The Libyan Parliament-designated government has cautioned against the repercussions of lifting fuel subsidies, warning that it exacerbates citizens’ suffering and impacts various sectors, including education, health, industry, and commerce.
This comes in response to the decision by the rival government in Tripoli, led by Prime Minister Abdel-Hamid Dbaiba, to remove fuel subsidies.
The government, headquartered in Benghazi and led by Prime Minister Osama Hamad, stated that the “expired Dbaiba government cannot make a decision to lift subsidies.”
It described the decision as “hasty, lacking a thorough examination of its consequences and the resulting damages, without creating mechanisms to ensure its success without affecting citizens’ needs, and without jeopardizing the country’s economic and financial stability.”
The statement accused the Dbaiba government of “squandering billions without building a single vital facility to make Libya independent from fuel imports. The Government of National Unity (GNU) has not shifted from being consumer importers, to productive exporters. It has not established a single oil refinery, nor has it renewed or developed existing ones. It has neglected essential maintenance, raising concerns about its handling of Libya’s oil and gas.”
Hammad’s government emphasised that decisions regarding “spending and managing the people’s resources, should be made only through the elected legislative authority. The rights of the Libyan people cannot be tampered with, except through laws issued by the sole legislative authority in the country.”
The Parliament-designated government reiterated its commitment to implementing relevant judicial rulings, including appointing judicial guards for Libyan oil funds.
Libya has been in chaos since a NATO-backed uprising toppled longtime leader Muammar Gaddafi in 2011. The county has for years been split between rival administrations.
Libya’s economy, heavily reliant on oil, has suffered due to the ongoing conflict. The instability has led to fluctuations in oil production and prices, impacting the global oil market and Libya’s economy.
The conflict has led to a significant humanitarian crisis in Libya, with thousands of people killed, and many more displaced. Migrants and refugees using Libya as a transit point to Europe have also faced dire conditions.
The planned elections for December 2021 were delayed due to disagreements over election laws and the eligibility of certain candidates. This delay has raised concerns about the feasibility of a peaceful political transition.
Despite the ceasefire, security remains a significant concern with sporadic fighting and the presence of mercenaries and foreign fighters. The unification of the military and the removal of foreign forces are crucial challenges.