{"id":253744,"date":"2025-04-26T00:46:20","date_gmt":"2025-04-25T22:46:20","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=253744"},"modified":"2025-04-26T00:46:20","modified_gmt":"2025-04-25T22:46:20","slug":"al-zantouti-once-again-the-elite-and-their-demand-to-cancel-or-replace-the-subsidy","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/al-zantouti-once-again-the-elite-and-their-demand-to-cancel-or-replace-the-subsidy\/","title":{"rendered":"Al-Zantouti: “Once Again, the Elite and Their Demand to Cancel or Replace the Subsidy!!”"},"content":{"rendered":"\n

Written by financial analyst Khaled Al-Zantouti<\/em>: Once again, the elite and their demand to cancel or replace the subsidy!!<\/p>\n\n\n\n

To begin with, we are all aware of the negative effects of excessive and unregulated fuel subsidies, and how these can sometimes negatively impact even citizens themselves\u2014through the horrific road accidents we witness daily, and through the exploitation of this subsidy, which was created for their benefit, by those with ill intentions, even foreigners, who have built and continue to build massive wealth by stealing and smuggling this subsidized fuel worth billions\u2014at the cost of the nation’s wealth. Not to mention its significant negative effect on macroeconomic factors and public finances, and the importance and necessity of addressing it. We all understand and acknowledge that. However, I want to point out, with some skepticism and surprise, that most of the elites<\/em>\u2014when they talk about subsidies, analyze the data, and suggest solutions\u2014make no mention, directly or indirectly, of smuggling and its perpetrators, or the importance of eliminating it as the primary reason for the misuse of the subsidy and its harmful economic effects. Instead, they direct all their anger at the citizen who may be using a few liters to meet their basic needs\u2014while ignoring those smugglers<\/em> who smuggle fuel to inflate their wealth and offshore accounts, costing billions annually without oversight, deterrence, or legal consequence.<\/p>\n\n\n\n

We\u2019ve said it many times: solving the subsidy problem must start with eliminating smuggling. Our main issue is smuggling. It pains me less that a simple Libyan citizen uses a few liters of gasoline a month to get to work, and more that hundreds of thousands\u2014even millions\u2014of liters are being smuggled by organized groups through fleets of ships and vehicles.<\/p>\n\n\n\n

Why doesn\u2019t the elite<\/em> talk about that smuggling, which translates into billions of dollars outside our borders for the benefit of certain individuals, including foreigners? Isn\u2019t that the real tragedy? Why don\u2019t we talk about them<\/em> and fight them first, before turning to that poor soul<\/em>\u2014the ordinary citizen?<\/p>\n\n\n\n

That raises a big question mark for me\u2014maybe there are<\/em> reasons behind that, for some! Perhaps the first reason is the state\u2019s inability to fight its own deep state<\/em>.<\/p>\n\n\n\n

Didn\u2019t foreign newspapers recently write that our subsidized oil is being sold at stations in Italy, Malta, and Greece\u2014and surely in Niamey and N’Djamena?<\/p>\n\n\n\n

Don\u2019t statistics show that more than 40% of our subsidized fuel is being smuggled\u2014worth billions of dollars\u2014by sea, land, and perhaps even (air)… or maybe it just evaporates straight from the ports!!!<\/em> And it\u2019s happening in plain sight.<\/p>\n\n\n\n

Even from an economic standpoint, I don\u2019t care if a Libyan citizen consumes a few subsidized liters\u2014it’s their oil, from their land. Though I do support organizing it in the future, for another purpose: efficiency. That\u2019s the economic goal we should agree on achieving. But what I really care about is putting an end to this smuggling first\u2014through which billions flow into the pockets of international gangs, some of whom likely have (monetary and oil connections with local entities), receiving crumbs compared to what those gangs make from marketing that smuggled oil abroad.<\/p>\n\n\n\n

I\u2019m also amazed by those who demand the cash replacement of subsidies all at once\u2014in one bad-luck strike\u2014and then insist smuggling will end as a result.<\/p>\n\n\n\n

To them I say\u2014and I swear\u2014even if the entire subsidy is removed, the smugglers and their bosses will find and develop ways to smuggle it with the government<\/em>, from the government<\/em>, and for free<\/em>! And then the smooth talkers will say: \u201cIt\u2019s just transit trade!\u201d What kind of transit trade is this\u2014with no regulations, no system, and in unstable security conditions? It will no doubt be banditry with official or semi-official cover<\/em>.<\/p>\n\n\n\n

Dear (elite) brothers\u2014are you less merciful than the International Monetary Fund, which calls in its recommendations for a gradual<\/em> removal or replacement of subsidies?<\/p>\n\n\n\n

Let me repeat this for the thousandth time: I support organizing fuel subsidies\u2014mainly for the purpose of rationalizing consumption and saving public finances\u2014but gradually, and based on a clear and transparent policy for cash subsidies. This requires careful and practical studies and preparation. But before all that, smuggling must be eradicated first<\/em>. Only then will we welcome subsidy reform. Only then can we rest assured that our oil remains ours. And even if we bear an extra burden in fuel prices, we will accept it willingly\u2014as long as it aims to rationalize consumption through fair and transparent means that prioritize support for the rightful citizen.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Written by financial analyst Khaled Al-Zantouti: Once again, the elite and their demand to cancel or replace the subsidy!! To begin with, we are all aware of the negative effects of excessive and unregulated fuel subsidies, and how these can sometimes negatively impact even citizens themselves\u2014through the horrific road accidents we witness daily, and through […]<\/p>\n","protected":false},"author":13,"featured_media":253745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[683],"tags":[613,936],"class_list":["post-253744","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-articles","tag-libya","tag-subsidy"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/253744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/comments?post=253744"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/253744\/revisions"}],"predecessor-version":[{"id":253746,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/253744\/revisions\/253746"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/253745"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=253744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=253744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=253744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}