In a revealing update on the nation’s subsidy spending, Morocco’s Minister Delegate in charge of the Budget, Fouzi Lekjaa, disclosed that the government allocates over MAD 15 billion each year to subsidize butane gas — a critical household energy source across the country.
Addressing the Moroccan Parliament in response to a written inquiry, Lekjaa emphasized that while this financial load is significant, the government has no intention of increasing butane gas prices in the near term. Each standard 12-kilogram gas cylinder receives an average subsidy of MAD 62, which makes it more affordable for millions of Moroccan households that rely on it for cooking and heating.
Targeted Assistance Over Blanket Subsidies
Lekjaa pointed to the government’s new direct social aid program, launched in December 2023, as a transformative step in Morocco’s approach to social welfare. Under this program, financial support is directly channeled to needy families instead of generalized subsidies that benefit both rich and poor alike.
The High Commission for Planning (HCP) assessed the impact of the recent price adjustments — which saw increases of MAD 2.5 and MAD 10 for 3 kg and 12 kg gas cylinders, respectively — and concluded that the average added cost for low-income households is only MAD 18 per month. This figure represents a modest 3.6% of the minimum monthly direct aid (MAD 500) given under the new program.
According to Lekjaa, 3.9 million families have been identified as beneficiaries of this new system. Monthly assistance ranges from MAD 500 to over MAD 1,500, depending on household size, vulnerability, and other socio-economic indicators. “The targeted subsidy model is a more efficient way to help those who truly need it,” Lekjaa affirmed.
Combating Inflation and Securing Food Supply
Beyond energy subsidies, the government has also made major investments in agriculture to cushion the economy from global inflation and ensure food security. Over MAD 20 billion was spent to support the 2022–2023 and 2023–2024 farming seasons, and a new emergency plan is currently in preparation for the 2024–2025 season.
These measures aim to reduce the cost of living, stabilize food prices, and boost domestic agricultural production amid challenges such as drought and rising global commodity prices.
Balancing Reform and Stability
Morocco’s reform of its subsidy system reflects a broader trend among developing nations seeking to transition from broad subsidies — often criticized as unsustainable — to targeted social assistance programs. The Moroccan government argues that this shift allows for better budget control while still protecting the most vulnerable.
However, the success of such policies depends on effective data systems, transparency, and public trust. Lekjaa reiterated the administration’s commitment to maintaining energy affordability while gradually shifting toward smarter, needs-based fiscal policies.
Looking Ahead
As global energy markets remain volatile, Morocco’s challenge will be to balance fiscal discipline with social equity. For now, butane gas — though costly to subsidize — will remain accessible to the public, especially with the backing of a strengthened social aid program designed to support those who need it most.
Key Figures at a Glance:
- Annual butane gas subsidy cost: MAD 15+ billion
- Subsidy per 12kg gas cylinder: MAD 62
- Households receiving direct aid: 3.9 million
- Direct aid per family: MAD 500 to MAD 1,500/month
- Agricultural support (2022–2024): MAD 20 billion
