The gasoline crisis is exacerbating in southern Libya, and families cannot afford the black market prices

The gasoline crisis is exacerbating in southern Libya, and families cannot afford the black market prices
The gasoline crisis is exacerbating in southern Libya, and families cannot afford the black market prices
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The gasoline crisis worsened in several cities in southern Libya, amid appeals to the people to solve the problem and provide subsidized gasoline, while prices jumped to new record levels. A liter of petrol in southern Libya amounted to four dinars, while its price in northern Libya did not exceed 0.15 dinars.

The head of the Facilitation Council in the municipality of Ghat, southwest of Tripoli, Ibrahim Al-Khalil, said during a phone call with Al-Araby Al-Jadeed that the lack of subsidized gasoline supplies caused the price of a liter to rise to four dinars in the parallel market. He added that the city’s residents are appealing to the government to intervene to solve the crisis, which has worsened since the beginning of the year.

For his part, citizen Abdullah Saleh from the city of Ghat complains about the continuing fuel crisis, stressing that “citizens have no ability to buy liters of petrol from the parallel market at an exaggerated price.” He also drew attention to patients from remote areas who need to travel for dialysis in city centers, not forgetting the suffering of students moving to schools.

From the village of Al-Raqiba in the far south of Libya, Masoud Al-Fazani says, “The gasoline crisis continues, and there have been no tankers for more than a week, and the price doubles every day, at first one dinar, and now with three dinars, and gasoline is supposed to be subsidized and reaches all places at a price of 0.15 dinars per liter.”

Economic analyst Bashir Al-Musleh saw that the problem of the south is primarily security, in addition to the continuation of the phenomenon of smuggling, wondering about the identity of the parties that pump fuel into the parallel market, and assigning part of the responsibility to the local authorities that do not play their role in coordinating the delivery of gasoline to citizens.

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He called for the need to lift subsidies on gasoline in order to eliminate the parallel market, or to use smart cards instead of smuggling and trading in the commodity to make profits at the expense of the citizen, noting in a statement to the “New Arab” that “the crisis has been recurring in the southern regions since 2015.”

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For his part, the Libyan Minister of Oil and Gas, Mohamed Aoun, said in press statements that Libya imports most of its needs of oil derivatives, because the Zawiya, Tobruk and Sarir refineries produce about 20 to 25% of the total Libyan state’s consumption of oil only.

The value of one liter of gasoline, according to the Libyan currency at subsidized prices, is estimated at about 0.15 dinars, and it costs between 5 and 8 dinars to fill the average tanks of private vehicles.

Libya subsidizes fuel (gasoline, naphtha, and diesel), and the subsidy bill in the 2022 budget is estimated at about 20 billion dinars, equivalent to $4.19 billion.

And the Audit Bureau revealed, in its annual report for the year 2021, that the figure spent from the general budget on fuel subsidies, amounting to 10 billion dinars, is “unreal,” explaining that the value of fuel consumed locally during the year is estimated at 32 billion dinars, equivalent to 7 billion. Dollars, as the National Oil Corporation received fuel in exchange for crude oil at a value of $3.6 billion (equivalent to 16 billion dinars), and the value of locally produced fuels amounted to 9.6 billion dinars.

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