Please share how much did you pay when renting car and driving to Merzouga from Marrakech (gas money). I am trying to figure out how much cheaper it is to rent a car and drive vs hire a driver. Thanks!

Depends on the vehicle, how fast you drive, whether it's petrol or diesel...
Obviously it will be cheaper, but I don't think that's the main decision criteria, it's more to do with whether you're the sort of person who enjoys planning a route and DIY. Drivers will only have a few words of English and personally I wouldn't like to share my holiday with a complete stranger with whom I cannot converse.
The Plien can be enough to take you from Marrakech to Merzouga for a small car, as the plien is about 400 Drhams as it can take around 1000 Kms, as i agree with Tim's suggestion.
I agree, the price of fuel is not more important than what you will see around the way, there are so many interesting places, you will be flexible, can stay where you want, etc.
It will be cheaper to hire your own car and put the fuel in, but as the previous posts advise, you will miss out on a lot of things that a professional driver will be able to show you.
As a comparison, expect to pay a driver (with a 7 seater type vehicle) to charge you 180 US dollars a day, that will include all of his costs. You will have to pay for your own accommodation, which does not cost that much once you are out of Marrakech (between 40-80 US dollars for a double room).
If you want the contact details of the English speaking driver I use when I am in Marrakech, then feel free to send me a private message and I will email his contact details to you.........
Edited: 4:40 am, February 23, 2013