Rabat – Aziz Akhannouch, the Head of Morocco’s Government, announced on Tuesday a significant hike in the price of large gas cylinders during a joint general session in Parliament.
Akhannouch made the announcement as he detailed the impending price increase of large gas cylinders, set to rise by 10 dirhams annually. Currently, a 12 kg gas cylinder is priced at MAD 130. However, it is being sold to citizens at a subsidized rate of MAD 40.
During his address, Akhannouch underscored the critical need for this adjustment, emphasizing the economic challenges facing the country.
He stated that the state budget could no longer shoulder the financial burden of both direct social assistance and the full cost of the compensation system, which has been absorbing a considerable portion of the national resources.
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As a result of these fiscal constraints, Akhannouch outlined a plan to gradually increase the price of the gas cylinder.
Starting in April 2024, the cost will rise by 10 dirhams annually until it reaches a yet-to-be-disclosed cap. The price hike, while intended to be gradual, is expected to continue until 2026, ultimately resulting in a more sustainable system that distributes the burden more equitably.
Earlier this month, the Moroccan government announced an allocation of MAD 16.35 billion ($1.5 billion) to subsidize butane gas, sugar, and soft wheat flour in the 2024 finance bill.
The decision reflected a significant reduction compared to the MAD 26.58 billion ($2.5 billion) allocated in the previous year’s finance law. The reduction in funding is seen as a strategic response to changing economic circumstances and a need to streamline resources.
