Libya’s fuel crisis and smuggling epidemics continues

The 2022 Audit Bureau report highlights the problem of smuggling subsidised fuel, costing Libya about 5 billion USD annually. Libya exchanges crude oil for fuel without proper oversight, making it challenging to track fuel purchases and smuggling. While not directly the NOC’s responsibility, the public looks to the NOC’s leadership for solutions.

For the first time, the Audit Bureau’s report now considers opportunity costs in Libya’s fuel sales, previously unaccounted for in the crude-for-fuel exchange. In 2022, Libya’s budget expanded to 44 billion USD, up from the reported 27 billion USD, with an estimated expenditure of 210 billion LYD. Fuel imports under the crude-for-fuel mechanism increased by 33% compared to 2021. However, revenue from subsidised fuel sales decreased, indicating a likely shift towards the black market.