Butane Gas Wholesalers Suspend Planned Strike After Government Measures

Agadir – Morocco’s Professional Association of Butane Gas Wholesalers and Distributors has suspended its planned strike action scheduled for April 21 and 22. 

The protest came amid rising prices, while profit margins have remained unchanged since 2016, despite growing pressures threatening the sustainability of the sector.

The decision to suspend the strike was followed by a press conference held by government officials addressing measures to combat the current global energy crisis and rising prices. 

During the meeting, Minister of Economy and Finance, in charge of the budget Fouzi Lekjaa outlined several measures to support citizens across various areas. 

The government decided to maintain the current price of butane gas. “The state today will bear MAD 78 ($8.44) per 12 kg cylinder, compared to MAD 30 ($3.25) before this crisis and before the beginning of March,” Lekjaa said. 

“This means that we need an additional MAD 48 ($5.20) of subsidy to maintain the price of butane gas used in all fields, especially since we know that its use is widespread among citizens,” he added. 

Under this measure, the state will allocate a budget of MAD 600 million ($64.96 million) per month to ensure that the price of butane gas remains unchanged and stable throughout the crisis period. 

Meanwhile, the minister reports that “electricity tariffs for household use and other uses will remain unchanged and will not see any increase.” 

The government will allocate a monthly cost of MAD 400 million ($43.31 million) despite the rising prices of fuel, natural gas, and coal which are important for electricity production.

“The government will spend MAD 400 million ($43.31 million) so that these prices do not lead to any increase in electricity tariffs,” Lekjaa further explained. 

For transport professionals, Lekjaa announced a budget of MAD 648 million ($70 million) covering  all transport sectors, including taxis of all categories, public buses, school transport, tourist transport, or rural transport. 

“This means that all professional transport sectors in all their forms benefit from this support…from 3 dirhams per liter, which will place them in conditions similar to those before the crisis,” he maintained. 

These measures are a response to heightened volatility in global energy markets, particularly following escalating tensions in the Middle East and concerns over the Strait of Hormuz, which ship a major share in the global oil and gas flows. 

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