HoR-Backed Government moves to end fuel subsidy

The Libyan government appointed by the House of Representatives has approved a proposal to lift subsidies on fuel and petroleum products, following high-level discussions in Benghazi.

Prime Minister-designate Osama Hamad met with Central Bank of Libya Deputy Governor Marai Al-Barasi at the bank’s Benghazi headquarters to discuss budget financing measures.

The government also approved including Libyan Foreign Investment Corporation revenues in general budget funding.

Officials agreed on several chapters of the proposed unified general budget, with discussions on the third chapter postponed for future meetings.

The meeting focused on developing implementation mechanisms for the subsidy reforms, though specific details of the proposed changes were not disclosed.

For decades, Libya has maintained one of the world’s lowest fuel prices through a generous subsidy system. Currently, gasoline prices are around 0.15 Libyan dinars (approximately $0.03) per liter, making it among the cheapest globally.

This pricing has been sustained by Libya’s oil wealth, with the state heavily subsidising fuel costs.