Former board member of the Central Bank of Libya, Mrajaa Ghaith, commented to our source regarding the removal of fuel subsidies approved by the Libyan government. He stated that the term “removal” is inaccurate, and the correct expression should be “substitution of subsidies.” From the perspective of justice and logic, removing subsidies is not a simple matter and cannot be a hasty decision taken lightly. It requires thorough studies, societal dialogue, and convincing citizens of the reasons behind substituting subsidies.
Ghaith added that if the issue concerns the large budget expenditures in this area, there are many other expenses that can be reduced or eliminated to save funds.
He also clarified that the state has revenues with external entities that it has not considered collecting. Subsidies should not be subject to political competition but rather should be a prudent decision based on careful studies.
Ghaith concluded his remarks by saying: “I do not understand whether this decision was discussed with the Central Bank of Libya. This is a political decision by the government. As for smuggling, it will not stop unless the price of fuel equals or exceeds its price in neighboring countries, so there is no profit in smuggling it. Technology can also be employed to combat smuggling by using tracking systems and requiring fuel to be sold only through a special card system instead of cash.”
