The Governor of the Central Bank of Libya, Seddiq Al-Kabeer, stated that the total direct and indirect subsidy expenditures in Libya have reached record levels, totaling 102 billion dinars annually.
Al-Kabeer clarified in a letter addressed to the Prime Minister of the National Unity Government, Abdul Hamid Dbeiebh, that the subsidy item increased from 20.8 billion in 2021, including fuel subsidies, to 61 billion during 2022. He expects the subsidy value to increase beyond 61 billion dinars in 2023, with 41 billion dinars allocated for fuel subsidies, which have significantly grown and annually drain approximately 8.5 billion dollars. This is in addition to other subsidy expenses directed towards the electricity sector, totaling 40 billion.
Al-Kabeer questioned how the expenses under the fourth section, “Subsidy Chapter,” jumped from 20.8 billion dinars, including fuel subsidies, in 2021 to 61 billion dinars in 2022, affirming that this is clear evidence of a flaw, distortion, and mismanagement in the fuel subsidy file.