What are the socio-economic effects of rising prices?

What are the socio-economic effects of rising prices?
What are the socio-economic effects of rising prices?

LMorocco has for years been part of a program of decompensation of basic products. After hydrocarbons, the government is currently tackling butane gas. This product swallows up on average 80% of the budget dedicated to compensation, which also includes sugar and wheat.

This reform has become necessary so that the saved budget is allocated to the direct social assistance system based on targeting the deprived population.

Since May 1, 2024, the price of a 12 kg gas cylinder has increased from 40 DH to 50 DH, and that of 3 kg has increased from 10 DH to 12.50 DH. Many unions and political parties have stepped up to denounce this increase. Abdellah Bouanou, president of the PJD group in the House of Representatives, affirmed that “the government has a purely accounting logic without providing the effort of innovation in its budgetary management. Instead of looking for new tax niches, To broaden the base, strengthen control and diversify resources, he chooses the easiest route. Thus, he wants to compensate for the increase in wages decided recently and finance the budget allocated to social assistance by an increase in prices. butane. We also question the existence of the monopoly of a few companies on the gas market in Morocco. This sector needs real reform.

For his part, Bouazza Kherrati, president of the National Federation of Consumer Protection Associations, indicates that the timing of this decision is very poor. Our country is still impacted by inflation. Even if the HCP speaks of a decline, it is still in the minds of citizens. It was necessary to postpone the increase in the price of butane until the socio-economic situation was more stable. We must not forget that this increase came into force a few weeks after the end of Ramadan and before Eid Al-Adha, two budget-consuming events feared by Moroccans. The psychological effect is very significant.

Still, it’s a 25% price increase! Further increases are planned for the coming years. This initiative will have harmful effects on the purchasing power of consumers, because many sectors using butane will pass on this increase in their production costs, like farmers, restaurateurs, hotels and other activities using this product.

Furthermore, Kherrati believes that “the increase in butane prices presents ecological damage due to the fact that in rural and mountainous areas, consumers will have to look for less expensive sources of energy such as wood, thereby amplifying the phenomenon deforestation.

Among farmers, the announcement of the increase in butane gas prices was poorly received by operators specializing in market gardening. “Butane is the most competitive energy Source for water pumping and irrigation. Through subsidies, the State encourages us to use solar energy, but this energy Source is recommended for small farms It is not suitable for pumping water over a long distance or when the area to be irrigated is large, requiring greater power. I own 40 hectares, half of which is dedicated to cultivation. carrots and the other for potatoes These plantations require unlimited water every day. The farm consumes on average around twenty gas cylinders per day. This represents an additional cost of 200 DH/day. , or the equivalent of 6,000 DH/month After the harvest, I will be forced to either increase prices or sacrifice my profit margin,” laments Mohamed Taki, a farmer in the Benslimane region.

-

-

PREV Tax incentive in Senegal: Ones calls for evaluation of the system – Lequotidien
NEXT Verruyes mayor’s list disowned