Rabat – Morocco’s government is deliberating on when and whether to increase the price of butane gas in the near future, Moroccan news paper Al Ahdath Al Maghribia reported in its latest weekly press review.
A press review indicated that the cabinet is deliberating an additional increase in butane gas by MAD 10 this year.
The Ministry of Economy and Finance is set to formalize the announcement soon, the press review added, noting that the additional price increase will see the price of butane gas jump by MAD 10 this year.
Meanwhile, there have been converging reports reassuring that this measure won’t coincide with the holy month of Ramadan.
The sacred month, which is expected to fall in March this year, is consistently met with concerns about increase in essential commodities, putting further pressure on people with limited resources and low-incomes.
Morocco’s government has been expressing concerns about the compensation fund, signaling its plans to reduce subsidies.
Reports have indicated that Morocco’s annual consumption of gas is estimated at 2.8 billion tons of gas, making the compensation fund over MAD 15 billion.
In May last year, the ministry officially announced that the price of 12 kg gas cylinders would increase by MAD 10, bringing the cost from MAD 40 to MAD 50.
The price of three-kilogram cylinders also increased to MAD 25.
These increases are part of partial reduction in the subsidy on butane, which began on May 20 last year.
With another potential increase, a 12 kg gas cylinder will cost citizen MAD 60 now, and MAD 70 next year.
The actual cost without subsidy is MAD 96, with the state subsidized amount reaching MAD 46.39.
In 2023, Head of Government Aziz Akhannouch said the decision to increase gas cylinders will be implemented gradually.
Meanwhile, Minister of Economy Nadia Fettah Alaoui said the subsidies for cooking gas reached $2.1 billion at the end of 2022.
Backing the measure, the government spokesperson Mustafa Baitas said in 2024 that the increase is part of “measures and efforts to boost social protects,” noting that this will enable the fund to finance direct assistance
