Morocco to Raise Butane Gas Prices in 2025 as Subsidy Reform Continues

Confirmed on March 18 by the governor of Bank Al-Maghrib, the 10-dirham increase per butane gas bottle was initially considered for the beginning of 2025. However, it has been postponed to avoid the Ramadan period, and its implementation is now set for the coming May or June.

This measure is part of a broader context of the state’s gradual disengagement from the price compensation system. The stated objective is to transition to an economic model where generalized subsidies give way to direct and targeted assistance, specifically intended for the most vulnerable households. Despite this increase, Bank Al-Maghrib maintains its forecast of stable inflation, around 2%, for the next two years.

The consequences of this increase are multiple. It will directly impact the purchasing power of Moroccan households and will lead to higher costs for many economic sectors that depend on butane gas, such as bakeries, catering or transportation. The government has announced the implementation of support measures to mitigate the impact on the most modest households, without specifying the details for the time being.

Beyond the purely financial aspect, this reform raises deeper issues. It marks a transition to a less subsidized economic model, where state intervention in price regulation is gradually fading away.

The removal of public subsidies represents a paradigm shift in the economy. The success of this reform, and the following ones, will largely depend on the effectiveness of the support measures put in place, but also on the social acceptance of this new model. Many Moroccans are very reluctant to the idea of the end of these subsidies, even if the government has put in place many aids to mitigate the effects.