The economist Ali Al-Solh said in a statement to our source that replacing subsidies is very necessary as it contributes to reducing the spending bill and creates greater opportunities for financial stability.
He added: “The national economy bears more than 70% of fuel subsidies from abroad, and this bill is expensive in light of the current high exchange rate, and consequently the volume of monetary units of the Libyan currency doubled, while local production of fuel constitutes 30% of production, compensating the remainder of the foreign import invoice.”
He also said: “It is logical that there should be a new balance of financial support. This balance stems from replacing the subsidy (the difference in the invoice) to targeting a set of prices and incomes, and on the other hand, this previous preparation stems from reducing smuggling operations and transforming them into trade and national income that contributes to increasing the domestic product, giving investment opportunities in the field of oil refining and creating a new market in the national economy.”
