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.
Root cause of the crisis
The root cause of the crisis is the lack of proper oversight and monitoring mechanism for fuel distribution by distributor companies. Some cities receive daily fuel supplies from multiple distribution companies, while others, despite having larger populations, receive limited quantities from only one or two companies.
