Morocco to Raise Gas Cylinder Prices as Subsidy Cuts Begin

Morocco is preparing for a new surge in gas prices. As of January 1st, the price of 12 kg gas cylinders could rise by 10 dirhams, going from 50 to 60 dirhams. This increase is part of a plan to gradually phase out subsidies on butane gas, approved by the Moroccan government.
This plan, which aims to finance an ambitious social protection project, provides for annual increases of 10 dirhams until reaching 70 dirhams in 2026. The small 3 kg bottles are not spared either and should also undergo a similar increase, after a first increase of 2.5 dirhams last May.
The Ministry of Economy and Finance justifies this measure by the need to ensure the balance of public finances and to finance the health coverage of millions of Moroccan families. The funds released by the reduction of subsidies would be entirely dedicated to strengthening health and education services.
This new increase worries many Moroccan households, already facing a generalized rise in the cost of living. Since the use of butane gas is very widespread in the country, especially for cooking, this measure is likely to weigh heavily on the budgets of the most modest households.
While the government is determined to pursue its plan, some observers do not rule out a possible postponement of this increase, as has already been the case in the past. Such a postponement would likely calm spirits, but would only postpone the inevitable rise in prices.
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