Morocco’s Subsidy Costs Drop as Butane Gas Prices Fall

According to the compensation fund, the cost of the butane gas subsidy amounted to more than 4.23 billion DH at the end of May 2020, down 6% compared to 2019. This decline is notably justified by the drop in butane gas prices in May and consequently the decline in unit subsidy prices by 68% compared to the same month of 2019. This price decrease was also accompanied by a 6% drop in distributed volumes.

As for the compensation cost for sugar, both in quantity and value, it decreased by 7% to more than 1.37 billion DH (481,439 tons).

Furthermore, the payment of outstanding subsidy files for butane gas and sugar, as of the end of June, totaled nearly 4.4 billion DH, including 3.4 billion DH for butane gas and 1 billion DH for sugar.

As for the outstanding subsidy files, they exceeded 4.6 billion DH, including around 3.1 billion DH for butane gas and nearly 1.5 MMDH for sugar.