Rabat — The partial withdrawal of the butane gas subsidy will take effect starting tomorrow, Monday, May 20, 2024, as part of the government's direct social assistance program. This initiative aims to more effectively select households eligible for social aid, according to the Directorate of Competition, Prices, and Compensation, under the Ministry of Economy and Finance.
The government has bolstered the direct social assistance program with several social initiatives. These include the extension of medical coverage to 4.2 million families under the AMO Tadamon scheme and a housing assistance program benefiting 330,000 families over three years. Additionally, recent salary increases for public and private sector employees, announced during the April round of social dialogue, are expected to enhance the purchasing power of more than 4 million Moroccan families, the Directorate stated in a communiqué.
As a result of the subsidy withdrawal, the price of a 3 kg gas bottle will rise by 2.5 dirhams, while the price of a 12 kg gas bottle will increase by 10 dirhams.
The communiqué highlighted that this partial reform of the butane gas subsidy system aligns with the broader direct social assistance program, which has already benefited 3.6 million families as of last April. The reform emphasizes a more effective selection of eligible households through the unified social registry.
In this context, the comprehensive reform of the social protection system will proceed with the implementation of Framework Law 09.21 on social protection, published in the Official Bulletin on March 23, 2021. Article 8 of this law states that the direct social assistance program will be financed through the generalization and consolidation of various social programs, coupled with the gradual reform of the compensation system.
The government has earmarked 80 billion dirhams up to 2026 to fund all social programs and to implement the recommendations of the social dialogue, including salary increases for both public and private sector employees, the communiqué added.
