Nearly 18 billion dirhams were allocated to compensation in 2025. Bank Al-Maghrib estimates that this universal subsidy primarily benefits the most affluent households and calls for better targeting of public aid toward the most vulnerable populations.
Subsidies for butane gas cost the Moroccan state more than 15 billion dirhams each year, said Fouzi Lekjaa, Minister Delegate in charge of the Budget, at the beginning of the week.
The Moroccan government is preparing to implement a significant increase in the price of the butane gas bottle . Scheduled for May or June 2025, this 10-dirham increase marks a new step in the gradual removal of public subsidies and raises questions about its economic and social impact.
While the price of basic bread is maintained at 1.20 dirhams thanks to a subsidy from the Compensation Fund, Moroccan bakers are preparing to negotiate the future of bread with the Minister of Agriculture, Rural Development, Water and Forests.
The specter of fraud looms over butane gas bottles in Morocco, according to a revelation by MP Nezha Abakrim, member of the Socialist group.
The Association of Bakers of Kelaat M’gouna, in the province of Tinghir, announced an increase in the price of bread starting this Monday, May 20, 2024. The price of a 250-gram loaf will go from 1 dirham to 1.20 dirhams in all bakeries in the Dades basin region.
The price of butane gas in Morocco will increase from this Monday, May 20, 2024, following the government’s decision to partially decompensate the subsidy granted to this product. This measure aims, it is said, to rationalize public spending and finance the direct social assistance program, intended for the poorest households.
While the idea of a gradual increase in the price of butane gas bottles in Morocco is stirring minds, the government is reassuring, but remains rather vague.
The information that the price of gas bottles (butane) will increase in Morocco from this Monday is not verified.
The countdown has begun. As of April 1, 2024, Moroccans will have to dig deeper into their pockets to get a butane gas bottle . Goodbye to the state subsidy, the price will go from 40 to 50 dirhams, marking the first step in a gradual increase spread over three years.
Due to an announced decompensation, the prices of certain consumer products such as gas, flour and sugar will be more expensive for Moroccan consumers.
The delegate minister to the Minister of Economy and Finance, in charge of the Budget, Fouzi Lekjaa, revealed during a general debate on the 2024 Finance Bill in the House of Representatives that the compensation fund benefited the richest and that the 2024 budget will reverse this trend in favor of the poorest.