Morocco to Raise Butane Gas Prices in Subsidy Reduction Plan

This measure is part of the policy of gradual lifting of government subsidies on butane gas, initiated in May, in order to reduce the financial burden of the Compensation Fund.

The government plans to continue this gradual increase at a rate of 10 dirhams per year, bringing the price of the bottle to 70 dirhams in 2026, as announced by the Head of Government. However, it is possible that this increase will be postponed after January, like the first increase which had been effective after mid-May this year. Nevertheless, it is highly likely that this measure will be applied before mid-2025.

Faced with this price liberalization, the government has implemented a direct social support program to accompany the most vulnerable households. Launched at the beginning of the year, this program aims to mitigate the impact of rising prices on the most modest households.

This second increase of 10 dirhams should generate more than 2 billion dirhams per year for the state coffers. Before the first increase, the Compensation Fund was taking charge of an annual cost of 15 billion dirhams to subsidize the prices of butane gas.