Morocco begins gradual cooking gas subsidies cut

Following targeted cash-handouts to needy households, Morocco has cut by 10 dirhams the subsidized price of a cooking gas cylinder, in a move that will alleviate the subsidies burden.

The decision- that entered into force on May 20- marks the first subsidies cut in a gradual process that aims at breaking away with general subsidies.

The logic is that the needy are getting cash-handouts thanks to a national register that identified those eligible to state aid.

Prior to cutting subsidies, the government has also generalized health insurance and pays for the contributions of poor households.

It has also raised the minimum wage, both for the public and private sectors, and hiked salaries of civil servants.

These measures were meant to support the purchasing power of citizens and end with a policy of general subsidies that also benefited wealthy households and deepened the subsidies burden on the state budget.

Morocco ended its control of diesel prices in 2015 but maintains subsidies on sugar and flour.