During his meeting with the (elected) Local Chiefs of Libya, Tripoli based Libyan Prime Minister, Abd Alhamid Aldabaiba, said Libya loses about LD 60 billion (US$ 12 bn) annually in subsidies. Aldabaiba has announced that he is reforming the current subsidy system by paying the estimated calculated amount equivalent of fuel by every Libyan directly into their bank accounts. There is also a fear that the inflationary effect of removing subsidies would negate any payments made by the government. Aldabaiba said he will consult with the general public through conducting opinion polls and is engaging in an information campaign to sell the idea of subsidy reform. Weak interim governments lack mandate to force subsidy reformsIt will be recalled that nearly every interim Libyan government since the February 2011 revolution that ended the Qaddafi regime has talked about subsidy reform without taking any action.

Source: Libya Today January 18, 2024 14:29 UTC