Morocco’s Gas Consumption Drops as Government Raises Prices on Butane Bottles

Over the first eight months of the year, 1.938 million tons of butane gas was consumed in Morocco, representing about 161.47 million 12-kilogram bottles. During the summer season, demand dropped considerably to 58.62 million bottles, a decrease of 0.41 million bottles compared to the same period the previous year, according to the compensation report annexed to the 2025 finance bill.

According to the report, the government’s decision to increase the price of the 12-kilogram butane gas bottle by 10 dirhams from May 20, 2024, led Moroccan consumers to reduce their gas consumption during the summer. The measure had been taken as part of a plan to gradually reduce subsidies for butane gas, the document notes, noting a 9% decrease in the butane gas subsidy between January and August 2024 (10.45 billion dirhams) compared to the same period the previous year (11.48 billion dirhams).

The average monthly subsidy is 1.306 billion dirhams. It reached its lowest level since February 2021 in June 2024, with 909 million dirhams, and crossed the one billion dirhams threshold again in July and August. The total cost of subsidies amounts to 124.3 billion dirhams over the past ten years. Despite a noted decrease in 2023, the cost of subsidies in Morocco remains one of the highest compared to other countries like India, Egypt and Tunisia.

The Ministry of Economy and Finance had announced in a press release the partial reduction, as of May 20, 2024, of the subsidy allocated to butane gas bottles by 2.5 dirhams for the 3 kg bottle and 10 dirhams for the 12 kg bottle. The measure follows the improvement in the purchasing power of more than 4 million Moroccan families thanks to the "implementation of the direct social support program (3.6 million beneficiary families as of last April)".