UN Secretary-General Antonio Guterres revealed a report by the UN mission submitted to the Security Council addressing the economic situation in Libya. The report stated that public debt had risen to 146% of GDP, while inflation had increased to double digits, leading to a decline in purchasing power.
The report added that the oil and gas sector was affected by several factors, including operational challenges, restructuring efforts, and external factors. Rising global oil and gas prices coincided with increased Libyan oil production, resulting in higher total export revenues. Oil and gas revenues, including income from royalties and concession taxes, rose to an average of approximately $3.5 billion per month since April, compared with a monthly average of around $1.34 billion from January to March, according to data published by the National Oil Corporation.
The report also revealed that the Central Bank continued its efforts to digitize public financial administration and strengthen oversight of public-sector salary payments. On April 29, the Minister of Finance instructed public institutions to complete the submission of employee data through designated electronic platforms, noting that May 2026 would be the final month in which salaries would be paid manually.
To narrow the gap between the official exchange rate and the parallel-market rate and improve access to foreign currency through official banking channels, the Central Bank of Libya began in April supplying commercial banks and licensed exchange offices with additional U.S. dollars.
New regulatory measures were also introduced to regulate foreign-currency sales and direct electronic transactions for small traders, with a value of up to $100,000, aimed at enhancing transparency, improving oversight, and reducing the risks of money laundering and terrorist financing.
The report added that the National Oil Corporation announced an agreement with Trasta Energy Ltd, owned by the United Arab Emirates, to restore Libya’s full ownership of the Ras Lanuf refinery and complex. This paves the way for its rehabilitation and eventual reopening after more than a decade of inactivity.
Meanwhile, disruptions to fuel supplies affected Greater Tripoli and other cities in late April and May, mainly due to continued illegal exports of subsidized fuel, delays in imports of refined fuel, a shortage of storage facilities, and the temporary suspension of operations at the Zawiya refinery.
The report continued by stating that the systematic exploitation of subsidies is becoming increasingly evident. On June 8, Libya’s Audit Bureau and the National Anti-Corruption Commission published reports on fuel and medicine subsidies, pointing to suspected corruption, smuggling, and diversion in both sectors.
Those reports highlighted sharp and unexplained increases in fuel consumption by military and security entities and the energy sector. They also identified cases of duplicate procurement, abnormal growth in companies, and conflicts of interest in the health and pharmaceutical sectors.
The report noted that difficulties affecting the fuel and energy sectors increased pressure on electricity generation and supplies. In July, widespread power outages that disrupted electricity and water supplies across Libya led to reduced gas supplies and increased demand during a period of exceptional heat.
The outages followed weeks of repeated power cuts intended to manage fuel shortages. Public frustration over the situation led to demonstrations in Tripoli on July 26 and 27.
