Ben Sharada Warns Against Fuel Subsidy Cuts Without Economic Reforms

High Council of State member Saad Ben Sharada warned that removing fuel subsidies without proper alternatives and economic reforms could create serious social and economic problems in Libya.

Ben Sharada said fuel price increases would likely raise transportation costs and the prices of basic goods, while potentially putting more pressure on the exchange rate and worsening inflation.

He said Libyans support efforts to stop fuel smuggling, but stressed that authorities must first address economic and security challenges before placing additional costs on citizens.

Ben Sharada also highlighted the impact of the liquidity crisis and the lack of reliable public transportation, saying many citizens could struggle to afford fuel. He questioned the details and guarantees of proposed cash compensation programs, and called for clearer solutions.

Regarding fuel imports, he questioned the rise in Libya’s fuel import spending, which increased from around $3 billion annually between 2016 and 2019 to nearly $9 billion in 2024, saying the figures suggest a significant portion of imported fuel may be lost through smuggling.