Businessman Husni Bey said that replacing the subsidy with cash, if approved, will have a significant positive impact on the national economy, indicating that it will achieve fair distribution and provide at least $4 billion in the balance of payments, which supports the purchasing power of the Libyan dinar, and 80% of the Libyan people will come out from below the poverty line, in addition to converting the current smuggling into a transit trade.
Husni Bey explained that the fair, unsubsidized price of gasoline will be more than 4 Libyan Dinars per liter, but this will not affect the transportation cost except by a maximum of 20% of the current cost, given that fuel now represents less than 1% of public transportation costs, indicating that the impact of substitution on general inflation and material costs will not exceed 2%, because the effect of the current rise in freight represents only 0.05% of the value of the shipment, in addition to the loss of the availability of Diesel fuel at the present time, which has made transport prices stable for years, as if there is no there is basic support.
He added that public transport did not succeed in Libya because of the fuel price of “0.15 dinars per liter.” Even if there was a “7-star” public transport, the cost of transportation by private car in light of current fuel prices does not exceed 13,500 dinars per month, while the cost of public transportation may exceed 90 dinars per month, while no sane person leaves his car and moves to public transport, whose cost rises to about 700%.
Husni Bey concluded his speech by saying that the solution lies in the cash substitution of subsidies and the achievement of fair distribution, and this is possible now, indicating that the substitution provides at least $4 billion in the balance of payments, which is the basis for supporting the purchasing power of the Libyan dinar.