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22 October 2018 Libya to terminate fuel subsidies within three years

In a press statement, Ahmed Maiteeq, Member of the Presidential Council, confirmed that the fuel subsidies would be eliminated in a maximum of two or three years, pointing out that the citizens would buy the goods at their actual value in the global market without any support from the state. He clarified that the decision regarding the termination of subsidies on fuel and the mechanisms of the implementation process would be announced on November. Fuel subsidies rate in Libya is around 75 %, meaning the government covers three quarters of the cost of fuel. The International Monetary Fund (IMF) estimated in 2013 that over 14 % of Libya’s budget or about $7 billion would be swallowed up by subsidies for food and fuel. In the last years, spending has been rising rapidly to drive the post-war reconstruction effort. The measure is likely to spark protests among the population.