Member of Libya’s High Council of State (HCS), Saad bin Sharada, has spoken out against the decision to remove fuel subsidies, stating that this “will lead to unaffordable fuel price hikes for citizens. This has been poorly considered and disruptive to the country’s resources, and
is inconsistent with the objectives of a government committed to state-building.”
Sharada emphasized that the decision would “not only affect fuel prices, but also lead to increased electricity costs, as subsidies significantly support the power sector.” He warned that this step would “escalate living costs, potentially leading to a catastrophic impact on the citizens.”
He concluded his statement by questioning the government’s objectives, pointing out the contradiction in seeking to save state funds, while the government reportedly spends billions daily. This move, according to Sharada, seems inexplicable given the current financial practices of the government.
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.