Libyans fear reform as IMF calls for end to decades-old petrol subsidy
Al Jazeera · Just In
Al Jazeera
Just In
Libya's fuel subsidy system is costing the country billions annually. With petrol priced at less than three U.S. cents per litre, the subsidies consume nearly a third of Libya's national budget whilst barely benefiting ordinary citizens.
Breakdown
- Libya's petrol is among the cheapest globally due to long-standing government subsidies.
- Fuel smuggling is widespread, with over 30% of imported fuel being illegally exported. 29s
- The IMF recommends phasing out subsidies and compensating citizens with direct payments. 38s
- Public distrust and the influence of armed groups pose challenges to subsidy reform. 53s
- Potential savings from reform could be invested in health and education, but trust-building is needed. 2m 35s