Morocco’s Subsidy Bill Soars: Gas and Sugar Costs Hit 15.8 Billion Dirhams in 2019

The average price of butane gas was set at $466 per tonne, an increase of 4% month-on-month and 22% year-on-year, the Compensation Fund said. Despite this increase, the average butane gas prices in 2019 fell by 18% compared to 2018, the same source noted. As a result, the unit subsidy has declined.

Its average at the end of December 2019 for the 12 kg cylinder is around 44.81 dirhams and 11.81 dirhams for the 3 kg cylinder, compared to 58.92 and 15.34 dirhams respectively for the same period in 2018.

The 2019 Finance Act had provided for a budget allocation of 17.67 billion to support the prices of butane gas, sugar and also soft wheat flour. This subsidy is increased to 18.3 billion taking into account the accompanying measures.

This year, the 2020 Finance Act has provided for a global allocation of 13.64 billion dirhams to support the prices of butane gas and food products (sugar and soft wheat flour), which is increased to 14.6 billion, taking into account the accompanying measures.