Butane gas: a rise in prices affecting many other sectors of activity

Butane gas: a rise in prices affecting many other sectors of activity
Butane gas: a rise in prices affecting many other sectors of activity

The effects of the partial decompensation of the State subsidy on butane gas, previously decided and applied by the government since Monday, May 20, 2024, are likely to have repercussions on many other sectors of activity.

The government has in fact just adopted an increase of around 2.50 dirhams on the price of a 3 kg gas bottle, and 10 dirhams for a 12 kg gas bottle. This measure raises fears of a domino effect, via an increase in prices on other everyday consumer products, which will fuel inflation, indicates Eco Inspirations this Tuesday, May 21.

Postponed several times, this decision will have a broader impact, “inevitable, due to its transversal nature», writes the daily.

Asked by Eco InspirationsBouazza Kherrati, president of the Moroccan Federation of Consumer Rights (FMDC), declared “to understand» this decision, but wanted to express reservations.

The president of the FMDC thus explained that the 2024 Finance Law certainly made it possible to establish a progressive decompensation of the State subsidy on butane gas, and its replacement by a program of direct social aid, on the basis of principle of more effective targeting of the most deprived households, which is, he considered, “a laudable solution“.

However, Bouazza Kherrati fears that “consumers should expect a surge in the prices of several products, which will be directly affected by this increase“.

It remains to be hoped, he also explained, that the alternative of the effectiveness of direct social aid will make it possible to avoid further straining the purchasing power of consumers.

Referring to estimates from the Directorate of Competition, Prices and Compensation, of the Ministry of the Economy and Finance, Eco Inspirations writes that the government “reinforced the direct social aid program with a set of social programs, including the direct aid program which targeted on average, at the end of April 2024, the equivalent of 3.6 million families, in addition to the generalization of medical coverage, which covered 4.2 million families, by allowing them to benefit from the AMO Tadamon“.

The daily also mentions the housing assistance program, which targets 330,000 families over three years, as well as an announcement of an increase in the salaries of civil servants and employees in the public and private sectors, conclusion of the open social dialogue rounds. last April, which will improve the purchasing power of more than 4 million Moroccan families.

The margins resulting from the gradual lifting of subsidies are, as such, supposed to finance this aid.

By Nabil Ouzzane

05/20/2024 at 8:51 p.m.

-

-

PREV a teenager dies in the “Mysterious Gorges”
NEXT Russia “follows carefully” the rise of the far right in France and Europe