Marrakech, Morocco — In the face of soaring energy prices exacerbated by the Middle East crisis and the blockage of the Strait of Hormuz, Morocco’s delegate minister in charge of the budget, Fouzi Lekjaa, revealed on Thursday that the government is taking significant steps to protect consumers. The state is now spending over MAD 1. 6 billion ($160 million) monthly to shield Moroccan households from the sharp increase in energy costs.
During a press briefing following the government council meeting on April 2, Lekjaa detailed the extent of the financial burden. The price of a barrel of oil skyrocketed by 44% in March, jumping from $70 to $100, while diesel prices surged 75%, climbing from $717 to $1,260 per ton. Butane gas prices also saw a substantial rise of 38%, from $547 to $751.
In response to these dramatic increases, the government has implemented three key measures to mitigate the impact.
Firstly, the government has confirmed that the price of a 12 kg bottle of butane gas will remain unchanged. To achieve this, the state has increased its subsidy from MAD 30 ($3) to MAD 78 ($7. 8) per bottle, providing an additional MAD 48 ($4.
8) in support per unit. This measure alone is expected to cost the government MAD 600 million ($60 million) monthly. Secondly, electricity tariffs for both domestic and industrial consumers will not be altered.
The government will absorb the rising costs of fuel, natural gas, and coal used in power generation, a commitment that is estimated to cost MAD 400 million ($40 million) per month. Together, these two subsidies represent MAD 1 billion ($100 million) in monthly spending.
The third measure involves direct support for the transport sector. The government has reinstated a subsidy of MAD 3 ($0. 3) per liter of fuel consumed by professional operators, including taxis, buses, school transport, tourist transport, and rural transport.
This subsidy, which has been in effect since March 15 and is set to run through April 15, is expected to cost MAD 648 million ($64. 8 million) per month. Bank transfers to beneficiaries began on Thursday.
Lekjaa emphasized that the government is closely monitoring the situation in other affected sectors and is prepared to adjust its response as needed, with the primary goal of minimizing the crisis’s impact on citizens.
The minister also noted that Morocco’s fiscal management is capable of absorbing these exceptional costs, citing positive budget results through the end of March 2026 that align with projections. Lekjaa highlighted that all measures are in line with royal directives calling for immediate responsiveness during crises. An inter-ministerial committee, chaired by Head of Government Aziz Akhannouch, is closely monitoring developments and held a meeting on March 30 to assess the impact of the Middle East tensions on the Moroccan economy.
Source: moroccoworldnews
