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Lahcen Daoudi Denies Rumors Morocco Will Cut Butane Gas Subsidy

The government plans to cut subsidies on three elements but the exact decision remains uncertain.

28 Feb 2019

Rabat— Minister of Governance and General Affairs Lahcen Daoudi has denied rumors about the government’s intention to cut subsidies on butane gas.

In a Facebook post on Tuesday, February 26, Daoudi says “I stress that in no way has the government taken any decision in this regard. The matter [subsidy cuts] is not even on the table.”

Daoudi’s statement came as a reaction to rumors breaking out on social media that the government plans to cut subsidies on butane gas, which sparked a wide public outrage.

Some said the price would double.

He explained that “this decision will be made only after guaranteeing that the purchasing power is intact, especially that of the lower and middle classes, through the Consolidated Social Register.”

Daoudi confirmed that no such decision is taking place at this stage, as the government is relying on the Consolidated Social Register program in the region of Rabat-Sale-Kenitra before making it available for all other regions after 2020.

According to the government, in order to go ahead with repairing the compensation fund, cutting subsidies on butane gas, along with sugar, is one possible measure.

It is anticipated that cutting subsidies of the vital element would take effect in the coming years to balance the compensation fund.

Moroccan citizens have been concerned about potentially losing the butane gas subsidy and last year boycotted the Afriquia gas company to vent their anger.

On his Facebook page, Daoudi wrote that “the wealthy are still benefiting from state subsidy on a number of consumer goods more than poor people who make up 7.1% of Moroccans. We have to put an end to this.”

“State subsidies will target poor and middle-class social groups,” he added. “This will be achieved through the Unique Social Register program.”

In an interview with Anadolu Agency, Daoudi stated that “there are three elements the government will cut subsidies on but have yet to be decided.”


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