Morocco gas supply at risk as distributors halt deliveries

Moroccan gas distributors announced a 48-hour halt to supplies due to rising costs, as reported by the Moroccan government-friendly Hespress on April 8th.

Due to the distributors’ strike, gas deliveries are expected to be suspended nationwide, disrupting household gas supplies amid rising energy costs and global supply uncertainty.

Distributors said the strike would take place over two days on April 21st and 22nd. It will affect the transport and delivery of butane gas cylinders nationwide, as operators face mounting pressure from higher fuel and logistics costs.

Mohamed Benjelloun, head of the Moroccan Professional Association of Liquefied Gas Depot Operators, said distributors could no longer operate under current conditions after talks with authorities failed to produce a solution.

“The decision to temporarily halt distribution came after exhausting all avenues of dialogue,” he said in a statement to Hespress, adding that the protest could be extended if the situation does not change.

Distributors said current regulated margins no longer cover their costs, with higher fuel and transport prices making operations increasingly difficult, and that many could no longer absorb further increases despite operating at a loss.

Morocco regulates the price of butane gas, which is widely used by households for cooking and heating. Distributors operate under fixed margins within a system that relies on subsidies to keep prices low.

Concerns about the model’s sustainability are not new; in 2022, distributors staged a similar strike over rising costs and warned that fixed margins did not reflect their costs, raising the risk of financial losses or bankruptcy.

At the time, operators said the gap between regulated margins and actual costs had widened as fuel prices rose, putting pressure on distribution companies nationwide.

Rising fuel and transport costs have continued to weigh on the sector since then, with distributors warning that existing pricing structures do not reflect current operating conditions.

Hesspress, Maghrebi.org