9 Hrs
Source:
عين ليبيا
Ain Libya Uncovers Libya's Economic Crisis
The article addresses the fuel and electricity crisis in Libya, where the causes intertwine between excessive energy subsidies, waste, smuggling, poor electricity grid efficiency, and unplanned urban and industrial expansion. It emphasizes that the problem is not just about the availability of gasoline or diesel but also related to pricing and distribution systems that render energy nearly free, leading to overconsumption and widespread smuggling. The suggested reforms include restoring energy prices to reflect their economic costs, converting subsidies into direct cash support for citizens, improving the efficiency of electricity production and distribution, addressing unregulated urban expansion, and digitizing the supply chain. The article also notes that diesel consumption, driven by the lack of electricity stability, increases demand for private generators, raises import costs, and puts pressure on foreign exchange reserves—factors that affect exchange rates and the broader economy. Proposed solutions involve reforming the energy system, supporting citizens directly, and implementing programs to upgrade infrastructure, all aimed at reducing dependency on oil and generators, turning the oil wealth into direct income for the citizens, and ensuring sustainable energy supplies.
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