62% of Moroccans find butane gas cylinder prices 'unbearable'

62% of Moroccans find butane gas cylinder prices 'unbearable'
MAP
Thursday 15 August 2024 - 11:59

A report released by the Sunergia Group on Monday reveals that a significant majority of Moroccans are struggling with the recent increase in butane gas cylinder prices.

According to the survey, 62% of respondents find the price hikes unbearable, with 48% describing the situation as completely intolerable.

The sentiment is particularly acute among rural residents, 71% of whom report that the increase is unbearable. Additionally, 90% of individuals from disadvantaged socioeconomic backgrounds share this view.

In contrast, 28% of those surveyed consider the price increase bearable, and just 10% describe it as very tolerable. The proportion of people finding the price manageable is higher among men (35%), urban residents (35%), and those from higher socioeconomic groups (46%) compared to the middle class (35%).

The survey also highlights that 40% of Moroccans have reduced their gas consumption in response to the price increase. This trend is more pronounced among young people aged 18-24, with 46% reducing their usage, and among those from lower socioeconomic groups.

On the other hand, 56% of respondents have not changed their consumption habits despite the higher prices. This group is mainly comprised of individuals aged 25-34 (60%), those aged 45-64 (60%), and members of the middle class (61%).

Regarding future price increases, 46% of Moroccans are unaware of potential further hikes in butane gas prices. This lack of awareness is more common among women (54%), young people aged 18-24 (57%), seniors aged 65 and over (51%), and residents of central regions (51%).

Conversely, 54% of Moroccans are aware of the possibility of future increases. This awareness is more prevalent among men (62%), individuals aged 35-64 (64%), residents of the south (63%), and those from higher socioeconomic backgrounds (59%).

To mitigate the impact of inflation and protect purchasing power, particularly for vulnerable groups, the Moroccan government plans to allocate MAD 16.5 billion to the subsidy fund for essential goods, including butane gas, sugar, and flour in the upcoming year.

Economic expert Mohammed Amin Al Hassani emphasized the importance of butane gas subsidies in a statement to Hespress Ar. He noted that as a net importer, Morocco is vulnerable to international price fluctuations. “If subsidies are further reduced in 2025, the cost of gas for millions of households will rise, directly affecting low-income families,” he said.

Al Hassani stressed that maintaining subsidies on essential goods is crucial for social and economic stability. Abrupt removal of these subsidies could severely impact citizens’ purchasing power, domestic consumption, and the environment.

Public finance expert Abdelrazzak Ennouhi warned that “cutting subsidies without clear alternatives would weaken domestic consumption, a key driver of economic growth.” He added that higher prices for basic goods would erode household purchasing power and negatively affect the national economy.

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