Libyans Concerned Over Fuel Black Market

Libya is suffering from a severe fuel shortage crisis, leading to gasoline shortages and the emergence of a black market. The price of un subsidized gasoline has risen to between 8 and 10 dinars per liter, compared to only 0.15 dinars for the subsidized version. The problem is exacerbated by smuggling, which benefits organized networks, resulting in the closure of suspicious fuel stations and long queues at others. The price gap between subsidies and market prices fuels smuggling activities. Experts and politicians are calling for a reassessment of the subsidy system, either by abolishing it or replacing it with direct cash transfers, to ensure market stability and reduce smuggling. However, such reforms face popular opposition and social risks, especially given that the government’s fuel subsidy expenditure reached approximately 34.5 billion dinars in 2025, accounting for 25.2% of total public spending. The issue remains complex, rooted in weak infrastructure, smuggling, and poor management of imports and storage.

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