Morocco allocates MAD 19.4 billion for food and butane subsidies in 2027

Morocco plans to allocate MAD 19.4 billion to subsidize butane gas, sugar and soft wheat flour in 2027, maintaining state support for essential household products amid international energy market volatility and pressure on purchasing power.

According to the subsidy report accompanying the draft 2027 Finance Bill, the government intends to continue shielding consumers from fluctuations in global commodity prices, particularly those linked to instability in the Middle East and disruptions to international supply routes.

The report, published by the Ministry of Economy and Finance, details the rising cost of maintaining subsidies during 2026.

Butane subsidies face rising costs

The average government subsidy for a 12-kilogram butane cylinder reached MAD 61.79 between January and August 2026, based on an average international price of $611 per tonne.

The subsidy increased to approximately MAD 70 during the conflict in the Middle East, compared with MAD 49 before the escalation.

Total butane subsidy expenditure reached an estimated MAD 9 billion by the end of August, up 4.95% from the same period in 2025.

Sugar subsidies, calculated at MAD 3.67 per kilogram, amounted to approximately MAD 2.7 billion during the first eight months of 2026.

Support for national soft wheat flour reached nearly MAD 800 million, while subsidies for selected food products in Morocco’s southern provinces totaled MAD 64 million.

Transport operators receive additional support

The government also reactivated exceptional financial assistance for road transport professionals following increases in diesel prices.

The program mobilized MAD 2.488 billion between January and September 2026, aiming to limit the impact of fuel costs on transport fares and consumer prices.

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