Morocco Plans $600 Million to Close Butane, Jet Fuel Storage Gaps by 2030

Marrakech – Energy Transition Minister Leila Benali told parliament on Monday that Morocco’s current fuel reserves are sufficient for diesel, gasoline, and fuel oil, but acknowledged a clear shortfall in the storage of butane gas and jet fuel – two commodities critical to household consumption and the aviation sector.

Responding to an oral question on the country’s strategic energy stockpile during a plenary session at the House of Representatives, Benali outlined a three-pronged government plan to strengthen storage infrastructure through 2030, backed by an estimated MAD 6 billion ($600 million) in total investment.

The minister said storage capacity investments have grown by more than 30% since 2021, bringing total national capacity to approximately 3.2 million cubic meters by 2025.

She noted that her ministry had, for the first time during the current government’s mandate, established a dedicated framework for tracking storage investment programs and streamlining the administrative licensing process to accelerate project delivery.

The target is to add over 1.5 million cubic meters of new capacity by 2030, with one-third of the planned investments set for completion by 2026.

On the second front, Benali pointed to the reintegration of storage tanks belonging to the shuttered SAMIR refinery into the national fuel storage network.

She explained that an assessment of national needs confirmed that existing reserves of diesel, gasoline, and fuel oil are adequate, partly thanks to the use of around 80,000 tons of capacity from SAMIR’s tanks since 2023.

However, the minister was candid about the gaps that remain. Butane gas and jet fuel storage fall short of national requirements, she admitted, announcing new projects that would add 400,000 cubic meters of butane storage and 100,000 cubic meters of jet fuel capacity by 2030.

The third pillar of the government’s strategy addresses the geographic imbalance of storage infrastructure. Benali revealed that roughly 80% of Morocco’s fuel storage capacity is concentrated along the Casablanca-Settat and Tangier-Tetouan corridor.

To correct this, the ministry is steering investments toward other regions, with the Nador West Med port positioned as a strategic new hub for fuel and natural gas storage.

The minister’s remarks came amid rising parliamentary pressure over the impact of fuel prices on citizens’ purchasing power.

MP Mohamed Lamkhantar, speaking on behalf of the Haraki parliamentary group, said the strategic energy reserve is a fundamental pillar of national energy security and that the government must act decisively to shield consumers from price volatility driven by geopolitical developments in the Middle East.

Lamkhantar criticized the lack of visible progress in storage policy since SAMIR’s closure and called for greater transparency in the fuel pricing structure, including procurement costs, profit margins, and the tax burden. He specifically pointed to the value-added tax and the domestic consumption tax as factors inflating pump prices.

The Haraki MP urged the government to invoke Law 104.12 on price freedom and competition to impose price caps, reduce the fiscal load on fuel products, and expand support to the sectors hardest hit by rising costs.

With the harvest season underway, he called for direct subsidies on agricultural diesel for farming equipment and tractors, alongside similar support for maritime fishing professionals who depend heavily on fuel for their livelihoods.

The government has yet to signal any immediate move toward price regulation, leaving the debate over balancing market liberalization with consumer protection firmly on the parliamentary agenda.