A report issued by the joint committee between the Libyan Audit Bureau and the Anti-Corruption Commission revealed legislative overlap and duplicated responsibilities between the National Oil Corporation and Brega Petroleum Marketing Company, resulting in weak oversight and accountability.<\/p>\n\n\n\n
The report confirmed that Brega Petroleum relies on approximate and traditional estimates to determine local fuel market needs and lacks scientifically validated studies.<\/p>\n\n\n\n
It also noted record increases and unexplained inflation in fuel withdrawals allocated to the public security sector, the armed forces, and the electricity sector between 2021 and 2024. Gasoline withdrawals by the public security sector increased by 621%, while diesel withdrawals rose by 441% in 2024 compared with 2021. Diesel withdrawals by the armed forces recorded a remarkable increase of 1,527% during the same period.<\/p>\n\n\n\n
According to the report, recommendations included imposing a daily late-payment penalty of 0.5% on fuel distribution companies that fail to settle their obligations on time, suspending fuel supplies to companies whose debts exceed 30 days, requiring fuel distributors to transfer revenues to the Ministry of Finance account within 48 hours of receiving fuel allocations, and installing GPS tracking systems and sensors on fuel tankers and storage facilities to improve distribution monitoring and combat waste and smuggling.<\/p>\n\n\n\n
The report stated that the proposed fuel-sector reform roadmap aims to reduce imported fuel quantities by between 25% and 30% in order to protect public resources.<\/p>\n\n\n\n
The report further found that Libya\u2019s fuel subsidy system suffers from serious legislative and financial loopholes that have weakened transparency and oversight, while relying on unclear mechanisms for financing subsidies outside the state’s general budget. It also noted the absence of explicit legal provisions regulating fuel subsidies within the Financial System Law, despite fuel subsidies being one of the largest categories of public expenditure. This situation leaves room for discretionary interpretations and unregulated administrative decisions.<\/p>\n\n\n\n
The Financial System Law does not provide for a dedicated government account for fuel subsidies, nor has the authority to establish additional accounts for subsidy management been activated within a clear and stable legal framework. The lack of a legal basis for fuel subsidy allocations makes them vulnerable to financial transfers and limits the existence of binding oversight mechanisms to monitor expenditures and ensure fiscal stability.<\/p>\n\n\n\n
According to the report, the Budget, Accounts, and Warehouses Regulation does not clearly define the mechanism for preparing fuel subsidy estimates or identify the responsible authority, highlighting weaknesses in the regulatory framework governing the system. The fluctuation of fuel subsidy allocations and the complete reliance on the oil-for-fuel swap system have resulted in the importation of large quantities without clear financial controls, making actual expenditures difficult to track.<\/p>\n\n\n\n
The report also argued that using oil resources to import fuel through the swap mechanism violates financial regulations governing public funds and contributes to concealing part of the state’s actual revenues and expenditures. It highlighted significant weaknesses in collecting fuel revenues from distribution companies, noting that total collections during 2022, 2023, and 2024 amounted to only LYD 596.7 million, amid ineffective collection and accountability mechanisms.<\/p>\n\n\n\n
The committee recommended introducing a mandatory fuel subsidy item within the state budget, determining its allocations according to clear criteria and linking them to global price fluctuations. It also called for greater transparency through monthly reports from the National Oil Corporation, Brega Petroleum, and the Ministry of Finance detailing imported and distributed quantities and subsidy allocations.<\/p>\n\n\n\n
Additional recommendations included improving revenue collection from fuel distributors by obligating them to transfer revenues within 48 hours, imposing penalties on late payments, and suspending fuel distribution to companies with debts exceeding 30 days.<\/p>\n\n\n\n
The report noted that the Government of National Unity approved fuel subsidy allocations worth LYD 5.2 billion in 2022 following a financial reallocation of LYD 2.6 billion. The 2023 budget did not include any fuel subsidy allocations despite continued spending through the swap system, while the temporary monthly appropriations approved for 2024 likewise contained no fuel subsidy allocations.<\/p>\n\n\n\n
According to the report, the swap system understated the state’s official revenues and expenditures by between 30% and 35%. Actual revenues collected from fuel distribution companies during 2022, 2023, and 2024 amounted to only LYD 596.7 million.<\/p>\n\n\n\n
The committee also recommended imposing a daily late-payment fine of 0.5% on companies that fail to transfer revenues owed to the Ministry of Finance and preventing fuel distribution to companies whose outstanding debts exceed 30 days until their financial obligations are settled.<\/p>\n","protected":false},"excerpt":{"rendered":"
A report issued by the joint committee between the Libyan Audit Bureau and the Anti-Corruption Commission revealed legislative overlap and duplicated responsibilities between the National Oil Corporation and Brega Petroleum Marketing Company, resulting in weak oversight and accountability. The report confirmed that Brega Petroleum relies on approximate and traditional estimates to determine local fuel market […]<\/p>\n","protected":false},"author":13,"featured_media":257251,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[655,758,613],"class_list":["post-257250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-audit-bureau","tag-fuel","tag-libya"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/257250","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=257250"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/257250\/revisions"}],"predecessor-version":[{"id":257252,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/257250\/revisions\/257252"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/257251"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=257250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=257250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=257250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}