Government Rules Out Gas Price Hikes

The Minister Delegate in charge of the Budget, Fouzi Lekjaa, confirmed on Monday before the House of Representatives that any increase in butane gas prices “is not on the government’s agenda.”

Responding to an oral question on “the impact of rising gas prices in Morocco,” posed by the Socialist Group – Federal Opposition during the oral questions session, Lekjaa stated that the government allocates over 15 billion dirhams annually to subsidize butane gas consumption, “a subsidy intended to benefit the poorest segments of society who need it the most.”

The minister highlighted that “the most vulnerable groups, representing 20% of the poorest segments, receive only 14% of this subsidy, while the wealthiest groups, accounting for 20% of the richest, benefit from 27%, double the amount received by the poorest.”

Lekjaa pointed out that the real issue with butane gas subsidies, as well as other subsidized products, lies in the misallocation of support. He emphasized that “the government and parliament, in all their components, must work to establish optimal mechanisms to ensure that this support fully reaches the poor populations it is intended for.”

He also stressed that the current challenge is not about reducing or increasing subsidies but about developing mechanisms to ensure that only disadvantaged classes benefit from this support. The minister stated that direct financial transfers to targeted vulnerable populations are the most suitable approach, as these groups deserve the aid and the financial savings that can be generated from more efficient subsidy management.