Butane gas in Morocco: distributors threaten to stop supply
Morocco's wholesale butane gas distributors threaten emergency stoppages over rising transport and fuel costs, demanding a revised margin or temporary subsidy.
Morocco's Professional Association of Wholesale Liquefied Gas Depot Operators threatened on Monday to carry out emergency stoppages in the distribution of butane gas cylinders, which most Moroccan households rely on daily for cooking and heating water, amid a continued rise in transport and fuel costs that is squeezing distributors. The association's president, Mohamed Benjelloun, said the situation professionals are facing now requires urgent intervention, stressing that "the patience of professionals has run out."
Why now?
The warning comes after the price of diesel rose by about 50 centimes to one dirham per liter at the start of November, bringing it close to 17 dirhams per liter at some stations, while premium gasoline fell by 10 to 50 centimes. Butane gas distributors say this rise in the cost of transporting cylinders by truck is weighing on daily distribution operations without meaningful compensation, squeezing their profit margin further.
Subsidies don't cover distribution costs
According to the finance bill report, the average public subsidy per 12 kg butane cylinder reached about 61.79 dirhams between January and August 2026, up 15.75% compared with the same period last year. However, this subsidy mainly aims to stabilize the price paid by the end consumer, and does not cover the transport and distribution costs borne by wholesale distributors themselves — a gap the association says has become unsustainable.
What is the association asking for?
The professional association is demanding either a revision of the distribution margin allocated to wholesalers, or a temporary exceptional subsidy to absorb the rise in transport and fuel costs. It warns that if the situation continues without urgent intervention, it could lead to actual stoppages affecting the supply of subsidized gas cylinders to markets. The association has not set a specific date for any stoppage, and as of this writing neither the government nor the relevant ministry had officially responded to the warning.