Morocco budgets MAD 19.4 billion for 2027 subsidies
The government will continue to support essential goods like butane, sugar, and soft wheat flour.
Morocco plans to allocate MAD 19.4 billion for subsidies on butane gas, sugar, and soft wheat flour in 2027. This funding aims to maintain state support for essential household products amidst global market volatility and pressure on citizens' purchasing power. The subsidy report, part of the draft 2027 Finance Bill, details the government's intention to shield consumers from fluctuating international commodity prices.
The average subsidy for a 12-kilogram butane cylinder was MAD 61.79 between January and August 2026, with costs rising to approximately MAD 70 during Middle East conflict. Total butane subsidy expenditure reached an estimated MAD 9 billion by August 2026, a 4.95% increase from 2025. Sugar subsidies amounted to about MAD 2.7 billion for the first eight months of 2026, while support for soft wheat flour was nearly MAD 800 million.
Additional support was provided to road transport professionals, with MAD 2.488 billion mobilized between January and September 2026 to offset rising diesel prices. Subsidies for selected food products in Morocco’s southern provinces totaled MAD 64 million.
Why it mattersMoroccan households will continue to receive financial support for essential food and fuel products.