Criticism of subsidies’ effects on prices and distribution
LIBYA – Ahmed Douga, deputy head of the Libyan Umma Party, has said Libya is bearing heavy financial losses because of fuel subsidies while citizens are still queuing for hours to fill their cars, arguing that this paradox reflects a serious failure in the management of the file.
Allegations of corruption and large-scale smuggling
In comments to Erem News, Douga argued that the continuing queues despite the cost of the subsidy point, in his view, to widespread corruption in the fuel sector, claiming that the quantities of fuel smuggled out of the country exceed what reaches citizens.
Price gap between Libya and other countries
Douga attributed the growth of fuel smuggling to the widening gap between the price of subsidised fuel in Libya and its price in neighbouring and even non-neighbouring countries, noting that this gap gives smugglers huge profits and fuels smuggling operations.
