Rabat – Morocco is set to witness a shift in consumer expenses as the government moves forward with plans to incrementally increase the price of butane gas, with potato prices expected to climb in tandem over the next three years.
In a move to transition away from widespread subsidies towards targeted assistance programs, the Moroccan government announced its decision to initiate a gradual phasing out of the clearing fund supporting essential commodities such as butane gas, sugar, and flour.
Effective from April 1st, the price of a 12-kilogram butane gas bottle will surge to 50 dirhams, up from the current 40 dirhams, marking the beginning of a multi-year adjustment period for consumers.
Mustapha Baitas, government spokesperson, reiterated the administration’s commitment to executing this reform during a press conference on March 7.
“These measures are part of a broader effort to enhance social protection,” he said, underlining the necessity for adjustments to finance direct assistance to eligible families.
Under the new framework, the government aims to shift from generalized subsidies to targeted support systems. A direct social assistance program has been established to aid disadvantaged families registered in the unified social registry.
Read also: World Bank Urges Morocco to Cut Butane Gas Subsidies, Increase Water Tariffs
The direct social assistance scheme, inspired by the Royal Guidelines outlined in King Mohammed VI’s address to Parliament in 2020, targets millions of families, particularly those without family allowances or with children in vulnerable situations.
With an annual budget set to rise from MAD 25 billion ($2.479 billion) in 2024 to MAD 29 billion in 2026, this program will contribute significantly to the welfare of families, including the implementation of “dignity income for the elderly,” “family allowances for all households,” and “lifelong support for people with disabilities.”
While the gradual increase in butane gas prices is poised to impact household budgets, particularly those of vulnerable families, the government has opted for a phased approach over three years.
This strategy aims to afford Moroccans the opportunity to adapt to the changes and explore alternative solutions as needed. In implementation of this decision, the prices of butane gas will witness an increase during this year, by 10 dirhams between 2024 and 2026.
Consequently, the cost of a 12-kilogram gas bottle is set to reach 70 dirhams by 2026, reflecting the government’s commitment to fiscal reform amidst socioeconomic challenges.
