During his appearance at the World Government Summit, Libyan Prime Minister Abdul Hamid Dbeibeh made an important announcement concerning Libya’s economic policy. He expressed that Libya will proceed with the suspension of fuel subsidies between June and the end of the current year. Dbeibeh voiced confidence that this decision would be supported by the Libyan people.
The Prime Minister stressed a major issue impacting the country’s economy, revealing that about 60% of Libyan fuel ends up being smuggled into neighbouring and European countries. This not only highlights the challenge of fuel smuggling but also the potential financial losses incurred by the state.
Moreover, Dbeibeh pointed out that subsidies consume over 40% of the national budget, a notable proportion that underscores the financial strain subsidies place on Libya’s resources. In light of this, he stressed that the funds previously allocated for fuel subsidies would be redirected to Libyan citizens directly, implying a shift towards a more targeted form of financial support for the populace.
Libya, known for having one of the lowest fuel prices globally, sells diesel at 0.031 US Dollars per litre (equivalent to 960 Tunisian millimes), positioning it as the second country with the cheapest fuels in the world, following Iran.