Audit Bureau: Libya spent $30 billion on fuel subsidies in five years

Audit Bureau: Libya spent $30 billion on fuel subsidies in five years

August 19, 2017 - 22:40
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Written By: AbdulkaderAssad

The Libyan Audit Bureau said Libya had spent $30 billion in the last five years on fuel subsidies (80% imported fuel and 20% local fuel.)

In a televised report, the Audit Bureau said Libya has the cheapest cost of gasoline in the world, adding that it is being smuggled to neighboring countries.

"If the cost of subsidies was given to Libyan families, each family would get $3000 in 2016 and would get $7000 in 2014." It added.

Most Libyan families did not get such a subsidy, the Audit Bureau continued, saying that the Central Bank of Libya's measures of austerity dropped the cost of the subsidies from $9 billion in 2014 to $4 billion in 2016.

"The revenue for the government from selling fuel did not exceed 670 million Libyan dinars, which makes up 13% of the cost of subsidies." The report added.

It also said that 30% of the subsidies is being smuggled to neighboring countries, stressing that the subsidies must be given to Libyans through electronic cards instead of the current policy.

"Power stations' projects must be resumed and gas must be used instead of fuel, which will help preserve Libya's natural resources." The report indicated.

The Audit Bureau said that Libya could save up to LYD800 million a year from the cost of subsidies and by limiting smuggling, but only after placing a limitation system on the use of the subsidized fuel.

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