Core Insights - Morocco's Ministry of Finance is systematically advancing the reform of butane gas subsidies, aiming to gradually eliminate the current subsidy mechanism over the next 3 to 5 years to alleviate public financial pressure and redirect savings to support a universal healthcare system [1] Group 1: Subsidy Reform Necessity - The current "universal" butane gas subsidy mechanism is inefficient, primarily benefiting higher-income urban households, failing to effectively reduce the living burden on middle and low-income families [1] - There are instances of farmers misusing subsidized gas for agricultural production, highlighting the need for reform [1] Group 2: Consumption and Financial Burden - Morocco's butane gas consumption has been steadily increasing, with a projected national consumption of 236 million bottles in 2024, an increase of 1.5 million bottles year-on-year, which is three times the level at the beginning of the century [1] - Since 2012, the Moroccan government has spent a cumulative total of $16.72 billion on butane gas subsidies, accounting for over 4% of public expenditure, representing one of the highest levels globally [1] Group 3: Pricing Adjustments - The actual cost of a 12-kilogram butane gas cylinder in the Moroccan market is approximately $10.4, with the government covering over 55% of the retail price [1] - To initiate the reform, the Moroccan government will implement the first price adjustment in May 2024, raising the retail price of a 12-kilogram butane gas cylinder from $4 to $5 [1]