Fuel shortages and black market fueling
Libya is facing a severe fuel crisis characterized by long lines at service stations due to the deteriorating supply, storage, and transportation systems, which are impacted by logistical, security, and geopolitical factors. Logistical issues are among the main causes of the crisis, accounting for about 60% of the problem. These include outdated infrastructure, limited storage capacity—which has decreased from two weeks to just three days due to ongoing sabotage since 2011—and the partial closure of storage facilities. Additionally, petroleum expert Mohamed Shihati attributed the crisis to Libya's reliance on importing fuel from international markets, given the lack of local refining capacity. Global market conditions and geopolitical factors—such as the closure of the Strait of Hormuz and Russia’s ban on diesel exports—have affected fuel availability. Weak control over supply chains and organized crime have also led to fuel smuggling into the parallel markets at prices ten times higher than official rates, resulting in stock shortages and shipment delays. Regarding solutions, Shihati recommended ensuring sufficient import volumes, temporarily strengthening security oversight, reactivating the Ras Lanuf refinery as a medium-term measure, and establishing a long-term national energy policy to guarantee sustainable supply.
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