Morocco’s Subsidy Costs Rise to 5 Billion Dirhams, Driven by Butane Gas Demand

8 June 2020 – byBladi.net · 1 min read

The overall burden of compensation for consumer subsidies stood at nearly 5.07 billion dirhams (BMDH) for the first four months of 2020, according to the latest information bulletin from the Compensation Fund. A year earlier, it stood at 4.64 BMDH during the same period.

In detail, the cost of the butane gas subsidy reached 3.923 BMDH, up 14% compared to the end of April 2019. This is mainly due to the rise in butane gas prices in the first quarter of 2020.

This increase in prices was accompanied by a 10% growth in distributed volumes due to the exceptional high demand for butane at the beginning of the lockdown.

As for the compensation burden for sugar, both in quantity and value, it fell by 4% to nearly 1.15 BMDH.

Furthermore, the payment of outstanding files for the subsidy of butane gas and sugar products, as of the end of May, totaled nearly 2.2 BMDH, of which 1.7 BMDH for butane gas and 500 million DH for sugar. As for the outstanding subsidy files, they exceeded 6.18 BMDH, of which 4.384 BMDH for butane gas and nearly 1.8 BMDH for sugar.

Category: Economy

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