31 Days
Source:
عين ليبيا
Expert Reveals the "Gap Economy" in Libya, From Gas Cylinders to Millions of Dollars
Businessman Hosni Bay stated that the problem of price gaps between official prices and market prices appears to stem from the nature of the economic system itself, which creates opportunities for speculation and profits not based on real production. He explained that the difference between the subsidized price and the real price—whether for foreign currency, fuel, or energy—leads to the emergence of "price arbitrage," which sometimes turns into speculation aimed at making profits from the support provided by the state. These profits are classified as "economic rent" because they depend on exploiting pricing privileges without increasing production, and they are borne by the public treasury. In other words, the financial burden of support falls on all citizens, benefiting those who have access to subsidized prices—not necessarily those who need them most. He pointed out that this applies to energy subsidies, foreign currency, and documentary credits, which contribute to transferring wealth from society to the entities that profit from these price gaps. Bay emphasized that the core problem lies in an economic system that creates these gaps, not just the beneficiaries, and this calls for a thorough reform of economic mistakes rather than merely blaming those who benefit.
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