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Fuel Crisis Grows in South Libya

January 9, 2024
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Libya, despite holding the rank of the third cheapest country globally and the cheapest in the Arab world for gasoline prices, is experiencing a severe fuel crisis in its southern cities. This paradoxical situation is raising questions about the effectiveness of the Government of National Unity’s (GNU) strategies to address the crisis.

A report by “Global Petrol Press” revealed that while Jordan leads the Arab world with the highest gasoline price of $1.635 per liter, Libya boasts the lowest price at $0.30 per liter. However, this low pricing does not reflect the situation in the southern cities of Libya, where fuel shortages are commonplace. Gasoline is scarcely available in official stations. but can be found on the black market for as much as 8 Libyan Dinars per liter, a price unaffordable for many.

The mayor of Sebha, Belhaj Ali stated that the main problem in the south is the “insufficient quantity of fuel reaching the region. The Sebha oil depot, responsible for supplying the entire southern area, fails to meet the demand.” Ali urged the Brega Petroleum Marketing Company to provide approximately 1.5 million liters of fuel daily, to alleviate the shortfall.

In southern areas like Qatrun, Wadi Atba, and Ghat, gasoline prices on the black market have soared to 8.5 Libyan Dinars per liter. Simultaneously, the cost of cooking gas in these markets has risen to over 100 Dinars per cylinder. The private sector, which supplies gas by renting tankers, charges around 10,000 Dinars without any government subsidies, unlike in central and western regions where a cylinder costs only 10 Dinars.

This scarcity in southern Libya is a recurring issue, with successive governments failing to resolve it. The crisis is exacerbated by the theft and smuggling of allocated quantities to foreign markets, at inflated prices.

Recently, the GNU pledged to increase fuel supplies to the Sebha depot. Ahmed Al-Mesallati, a spokesperson for the Brega Petroleum Marketing Company, announced the daily transfer of 2.5 million liters of gasoline from the Misrata depot to Sebha, aiming to solve the fuel crisis and increase storage capacity. He also mentioned the distribution of 1.2 million liters daily, across the southern region’s stations.

On Tuesday, local protestors from the Fezzan region shut down the Sharara oil field, southwest of Libya, protesting the fuel and gas shortages, poor public services, and rampant smuggling activities. They threatened further escalation if their demands were not met.

Citizens remain skeptical about the GNU’s promises to resolve the ongoing fuel shortage crisis. Reports suggest that the Libyan desert has become a major market for fuel sales and smuggling, thriving under weak security surveillance and instability, with oil becoming a victim of conflicts and the absence of effective governance.

This feature report highlights the complex dynamics of Libya’s fuel crisis, underlining the challenges faced by the government in ensuring equitable distribution and tackling corruption and smuggling activities. The situation in southern Libya serves as a stark reminder of the need for comprehensive, and sustainable solutions to address not just the symptoms but the root causes of such crises.

Tags: FuelFuel CrisislibyaSouth Libya
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