Fouzi Lekjaa: Butane Gas Costs Morocco Over MAD 15 Billion a Year
Rabat – The Moroccan government continues to face a heavy financial burden from subsidizing butane gas, revealed Fouzi Lekjaa, the Minister Delegate in charge of the Budget.
The country spends over MAD 15 billion every year to support the price of this essential household fuel. Each 12-kilogram gas cylinder receives an average subsidy of MAD 62.
Despite the high cost, Lekjaa confirmed that the government does not intend to raise the price of butane gas. He made the statement in response to a written question from the parliament.
He recalled that recent increases in the price of 3 kg and 12 kg gas cylinders, by MAD 2.5 and 10 respectively, were only applied after the launch of a new direct social assistance program in December 2023. The government allowed a four-month transition period to help limit the impact on low-income families.
Lekjaa said that data shows that the effect of the price increase has been small. According to the High Commission for Planning (HCP), the added monthly cost for poor households is no more than MAD 18 per month. That amount represents 3.6% of the minimum monthly financial aid of MAD 500 given under the new system.
Lekjaa stated that the direct aid system represents a major change in Morocco's approach to supporting families. Instead of giving general subsidies to everyone, which the government says is costly and ineffective, the new method provides money directly to families based on their needs, he argued.
The government allocated MAD 25 billion to help 3.9 million families. Monthly support ranges from MAD 500 to more than MAD 1,500, depending on each family's situation.
Alongside this, the government is also working to fight inflation, especially in agriculture. It has spent MAD 20 billion to support the 2022–2023 and 2023–2024 farming seasons. A new emergency plan is also being prepared for the 2024–2025 season to ensure food is available at affordable prices.
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