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Libya Herald
09-08-2025
- Business
- Libya Herald
Petrol stations to open 24 hours in response to petrol queues
Brega Marketing Company, the National Oil Corporation (NOC) subsidiary responsible for fuel imports and distribution, announced yesterday that its own petrol stations will open and receive fuel over a 24-hour period. This suggests that it will not include the two main privately-owned petrol stations (Sharara and Rahila). The move comes in response to the reappearance of queues at Tripoli's petrol stations, and Brega says it is part of the efforts made to address the fuel crisis and ease congestion at the stations. As usual, it is unclear why exactly a sudden fuel crisis has flared up. The authorities insist that there is no shortage of fuel, however, the reality is that petrol queues had started to lengthen over the last week. e-tracking (GPS) of fuel distribution trucks introduced In a move that may or may not be related to the sudden fuel crisis, Brega Marketing announced on 5 August the launch Of its electronic fuel truck tracking system (GPS). Although some independent commentators on Libyan media have challenged whether the new system can indeed do the following, Brega claims that the new system offers: * The possibility of direct communication with drivers. * SOS emergency alarm system. * Ability to stop the truck engine remotely. * Accurate identification of cargo unloading locations. This project, Brega added, underscores its commitment to digital transformation and enhanced oversight to serve the public interest. If successful, a possible quantum leap in Libya's anti-fuel smuggling efforts? Successive Libyan governments since the 2011 revolution have made unsuccessful efforts to counter the country's huge cross land and sea border fuel smuggling problem. Last month, Naji Issa, Governor of the Central Bank of Libya put the country's annual fuel smuggling bill at about LD 20 billion (US$ 2.7 bn). This equates to about a third of all annual government fuel subsidies. The launch of e-tracking (GPS) of fuel trucks is part of the government's wider effort to counter this fuel smuggling across land to neighbouring countries and across the sea to states where fuel prices are unsubsidised to the high levels of Libya. A subsidised litre of petrol in Libya today costs LD 0.15 – about US$ 0.02. It will be recalled that in July 2024, Tripoli based Libyan Prime Minister, Abd Alhamid Aldabaiba, and the head of the Audit Bureau, Khaled Shakshak, attended a workshop on launching an enhanced fuel truck tracking and fuel monitoring system on Brega fuel trucks. This ''anti-fuel smuggling system'' involves converting the fuel outlet valves on fuel delivery trucks from simple mechanical valves that can be opened by anyone at any time, to electronic valves that can only be opened at the targeted petrol station. The system also includes an electronic fuel gauge to measure the amount of fuel delivered; electronically sealed fuel inlets and control cameras fitted to the delivery truck. In parallel to this, an electronic gauge is to be installed at the fuel tanks in petrol stations.
Libya Herald
06-08-2025
- Automotive
- Libya Herald
Brega begins its fuel truck e-tracking system to counter smuggling
Libya's Brega Oil Marketing Company, the National Oil Corporation's (NOC) subsidiary charged with fuel imports and distribution, announced today that it has started its automated fuel truck tracking system. Brega said the operations and automated tracking room was inaugurated by its Chairman, Fouad Ali Balrahim, in the presence of Board members and several managers and company officials. A quantum leap Brega said the step is a quantum leap in direct communications with the drivers of the company's fuel trucks and immediate response to any emergency faced by the company's drivers, as well as enforcing regulations on speed compliance and good behaviour on the public road. Brega said that among the most important advantages of the system are: * The possibility of direct communication with drivers. * SOS emergency alarm system. * Ability to stop the truck engine remotely. * Accurate identification of cargo unloading locations. The project was implemented under the supervision of the General Directorate of Information and Communications Technology, and will manage the main operations room of the tracking process in cooperation with the departments concerned with controlling the movement of fuel trucks. This project, Brega added, underscores its commitment to digital transformation and enhanced oversight to serve the public interest. If successful, a possible quantum leap in Libya's anti-fuel smuggling efforts? Successive Libyan governments since the 2011 revolution have made unsuccessful efforts to counter the country's huge cross land and sea border fuel smuggling problem. Last month, Naji Issa, Governor of the Central Bank of Libya put the country's annual fuel smuggling bill at about LD 20 billion (US$ 2.7 bn). This equates to about a third of all annual government fuel subsidies. The launch of e-tracking of fuel trucks is part of the government's wider effort to counter this fuel smuggling across land to neighbouring countries and across the sea to states where fuel prices are unsubsidised to the high levels of Libya. A subsidised litre of petrol in Libya today costs LD 0.15 – about US$ 0.02. It will be recalled that in July 2024, Tripoli based Libyan Prime Minister, Abd Alhamid Aldabaiba, and the head of the Audit Bureau, Khaled Shakshak, attended a workshop on launching an enhanced fuel truck tracking and fuel monitoring system on Brega fuel trucks. This ''anti-fuel smuggling system'' involves converting the fuel outlet valves on fuel delivery trucks from simple mechanical valves that can be opened by anyone at any time, to electronic valves that can only be opened at the targeted petrol station. The system also includes an electronic fuel gauge to measure the amount of fuel delivered; electronically sealed fuel inlets and control cameras fitted to the delivery truck. In parallel to this, an electronic gauge is to be installed at the fuel tanks in petrol stations. Formation of a technical committee At the workshop, the Prime Minister directed the formation of a technical committee from all relevant authorities to evaluate the system and the practical steps to be taken to ensure its implementation throughout the country. Fuel consumption quotas for citizens and unsubsidized prices for foreigners Moreover, at the July 2024 workshop, subsequent possible and more advanced phases of the system included fitting electronic fuel pumps at petrol stations that can identify if the refuelling citizen's car has used up its allotted subsidised fuel consumption quota, if it is reported as stollen, or if it belongs to a foreigner. Foreigners could pay higher unsubsidised fuel price The system could be set up so thatforeigners would pay a higher unsubsidized price for petrol. Quotas are the average worked out by the government of how much fuel the average Libyan citizen consumes per day/week/month/year. Fuel consumption quotas are part of the government's plans to reform fuel subsidies by paying citizens directly the average amount of fuel they consume while raising fuel prices. This is to reduce the abusive consumption and smuggling of fuel across Libya's porous borders. . Attorney General holds anti-fuel smuggling high summit Ten expatriates convicted for smuggling 1.185 million litres of fuel off the coast of Zuwara Committee discusses regulation and fuel smuggling prevention system provided by Al-Namaa Oil Investment Company PM Aldabaiba attends workshop on an experiment of an electronic system to prevent fuel smuggling Secular and religious agree on need for Libya's gradual energy subsidy reform IMF study entitled 'Energy Subsidy Reform in Libya' concludes that reform is crucial as subsidies lead to overconsumption and premature resource depletion NOC chairman Bengdara says his organisation is not a security force to combat fuel smuggling ( Aldabaiba forms ministerial committee to study mechanism for fuel subsidy reform – again ( Supreme Council for Energy adopts NOC 2023-2027 plan, including alternative energy project ( Attorney General bans 15 petrol stations for fuel smuggling abroad ( Prosecutor orders fuel supply ban on 32 petrol stations accused of complicity in fuel smuggling ( Upon Attorney General's order, Brega stops supplying 32 petrol stations accused of fuel smuggling ( At Gharian cabinet meeting, Aldabaiba explains fall in black-market value of dinar and resounds alarm over fuel subsidies ( Ministry of Oil concerned about negative effect of UN report on fuel smuggling on sector investment ( Zawia Public Prosecutor orders detention of militia commander guarding Zawia refinery for fuel smuggling ( Attorney General takes measures to combat Zawia refinery fuel smuggling through security apparatus ( Economy Minister follows up on fuel distribution and counter-smuggling efforts including GPS tracking In an effort to counter fuel smuggling, the Economy Minister orders fuel trucks to be fitted with GPS tracking devices ( GPS truck tracking to be used to counter fuel smuggling, profiteering by fuel distributors will be penalized ( Libya's fuel smuggling: a new Swiss connection is revealed ( Alternatives to fuel subsidies with cash payments delivered to Aldabaiba ( Libya evaluating subsidies for renewable energies – within existing fuel subsidies ( Prime minister Aldabaiba forms Ministerial committee to study reforming fuel subsidies, orders payment of family grant, increases pensions ( Brega claims it can assess demand, manage smooth fuel distribution and reduce its smuggling ( Libya's annual fuel bill rose to US$ 12 bn due to increased electricity production ( Fuel quantities, smuggling and subsidy reform – and increased oil production through PPP discussed at summit meeting ( 44 Brigade continues fight against fuel smugglers – LibyaHerald GPS truck tracking to be used to counter fuel smuggling, profiteering by fuel distributors will be penalized – LibyaHerald Libya's fuel smuggling: a new Swiss connection is revealed – LibyaHerald AG issues arrest warrants, freezes bank accounts of fuel smuggling petrol station owners. – LibyaHerald Fuel smugglers' sites bombed by Air Force, petrol stations shut down as part of continuing anti fuel smuggling drive – LibyaHerald PC Air Force supports NOC's anti-fuel smuggling initiative – LibyaHerald Libyan fuel smuggling is part of an international smuggling network: Attorney General's office – LibyaHerald Tunisians make large fuel smuggling bust on border – LibyaHerald Coast guard arrests two tankers on suspicion of fuel smuggling – LibyaHerald Attorney General investigates petrol company executives over fuel smuggling – LibyaHerald Brega to inspect all petrol stations in its continued anti-fuel smuggling drive – LibyaHerald
Libya Herald
04-08-2025
- Business
- Libya Herald
CBL to bring FX rate of dinar to less than LD 7 per US$: CBL Governor Issa
The Central Bank of Libya (CBL) will use all its capabilities to bring the foreign exchange (FX) rate of the Libyan dinar (LD) to below LD 7 per US$. At one point, the LD was trading at LD 7.65/dollar yesterday. The statement was made by CBL Governor, Naji Issa, yesterday during what the CBL described as ''an extensive'' meeting with representatives of newly licenced FX companies and FX bureaux. These licenced FX bureaux had not existed before with foreign currency being sold informally, but in open view on the road running parallel and behind the CBL in Tripoli, on the edge of the Old City and Souk. The newly licenced FX bureaux have not started operating yet as they await CBL activation and the deposit of hard currency into their accounts. In his speech at the gathering in a top Tripoli hotel, Governor Issa admitted that some people may lose out because of the LD trading at less than LD 7/dollar. But added that some traders consider it a matter of stubbornness and may bring the LD exchange rate to LD 8 or 9/dollar to thwart the reform policies pursued by the CBL. Regarding criticism aimed at the failure of the CBL to control the FX black-market, Issa said some say the CBL's management has failed, but the truth is that only the state and the citizen will fail. CBL attempting to end black-market FX market The CBL said the meeting comes within the framework of its continuous efforts to regulate the FX market and activate the role of the private sector in providing financial services – but in accordance with clear legal controls and standards. Licenced FX bureaux must adhere to CBL controls During the meeting, the Governor stressed the importance of all licensed companies and offices adhering to the controls and instructions issued by the CBL, to ensure transparency and stability in financial transactions. He stressed that the licensed activity represents a key pillar in combating the parallel market and regulating the flow of foreign currencies through official channels. Without disclosing any further details, he revealed that several supporting measures will be announced later. During the gathering, the Governor also listened to the remarks and interventions of several representatives of FX companies and bureaux, and discussed with them the challenges they face, stressing the readiness of the CBL to cooperate closely with all concerned parties to support this important economic activity.
Libya Herald
29-07-2025
- Business
- Libya Herald
CBL grants licenses to 52 new FX bureaux – bringing total to 187
In accordance with the Central Bank of Libya's plan to activate the role of Foreign Exchange Bureaux and FX companies, and in follow-up to the previous announcement regarding the granting of a license to practice 135 companies and exchange bureaux. The Central Bank of Libya announced last Sunday (27 July) the approval by Governor Naji Issa to grant a new final license to 52 Foreign Exchange Bureaux and companies. This brings the total number to 187 FX companies and bureaux covering all regions of Libya, as well as granting an initial license to practice to 108 FX companies and bureaux. The new FX bureaux will operate in the market under the supervision of the Central Bank of Libya. The announcement by the CBL comes as part of its efforts to fight the FX black-market and defend the FX value of the Libyan dinar. Last week the dinar dropped below the LD 8 per US dollar threshold causing a wide outcry in anticipation of rising prices and cost of living. The CBL has vowed to bring the rate down and keep it lower with the announcement of a planned series of countermeasures. It has dropped to about LD 7.7/dollar this week. Libya's undiversified, consumer, rentier economy It is unclear if any of the CBL's policies can keep the FX rate down in the long-term. Libya is fundamentally a consumer rentier state economy dependent on oil exports and global crude oil prices. It has failed over the decades, despite much promise, to reduce its import bill by diversifying its economy and developing local production and industry. . CBL demands imports are conducted through official banking instruments and the elimination of the FX black market CBL sets 7 percent profit margin for official FX Bureaux CBL Governor Issa justifies Libyan dinar devaluation – blames both governments for uncontrolled spending and absence of effective, targeted macroeconomic policies CBL devalues Libyan dinar by 13.3 percent to LD 5.56 per dollar Future of the value of the Libyan dinar against the dollar is not reassuring under current circumstances: Former CBL Governor Jehaimi Nine reforms must be taken to preserve the value of the Libyan dinar: Bank and Fintech chairman Naaman Bouri CBL's latest revenues and spending data reveals a dinar surplus but a dollar deficit Grand Mufti of Libya laments demise of exchange rate of Libyan dinar – and lack of resignations by officials as a result CBL invites applicants who had previously obtained initial approval to establish FX bureaux to resubmit applications CBL defends its financial performance, protection of Libyan dinar value Audit Bureau freezes 160 bank accounts amid currency smuggling, fraud and duty evasion claims Tripoli introduces electronic import regulation system CBL: LD 3 bn in FX smuggling, money laundering – accuses local banks of corruption CBL issues 71 new FX bureaux licenses CBL approves applications for 64 Foreign Exchange Bureaux
Libya Herald
27-07-2025
- Business
- Libya Herald
Secular and religious agree on need for Libya's gradual energy subsidy reform
The secular and religious worlds have come to agreement on the need for Libya to gradually reform its fuel subsidies in the unlikely bedfellows of the International Monetary Fund (IMF) and Libya's (western region) Grand Mufti (the highest religious authority). Dar Al-Ifta, the highest religious body, released a video clip last Thursday (24 July) of the Grand Mufti of Libya, Sadeg al-Ghiriani, basing his religious recommendation on Libya's fuel subsidy reform on the IMF's study published this month entitled 'Energy Subsidy Reform in Libya'. Speaking on the problems of Libya's economy, the Mufti said ''the first step to reforming the waste of public money that Libya is currently experiencing is to lift the (energy) subsidies, almost half probably more, of which go to the money of criminals and smugglers''. Drawing on the IMF Al-Ghariani continued ''The report issued by the IMF calling for the lifting of energy subsidies is a study by international experts, the government should take advantage of it and gradually lift subsidies, as the report suggested, as there is no country in the world where gasoline and energy are sold at the price that it is sold at (LD 0.15 / US$ 0.09 per litre) in Libya''. Lack of trust in government – fear of failure to compensate for subsidy removal Dealing with some of the opposition Libyans have to the introduction of fuel subsidy reforms, the Grand Mufti said Libyans 'should not let their emotions carry them away by saying they fear if subsidies are removed the government will not live up to its promise to substitute it with a direct cash payment (equivalent to their realistic average annual consumption of fuel). ''Do Libyans agree to at least a third of their state budget being wasted away, robbed by thieves for illicit use and profligacy? This (continued squandering of public money) is not appropriate to the behaviour of any wise, Muslim or human being'', he added. ''I therefore call on the (Tripoli based Libyan) government to open this topic again based on the IMF's report and work on gradually lifting the (energy) subsidies, as suggested in the IMF report until energy prices reach their real (market) price''. The IMF study on Libya's energy subsidy reform It will be recalled that, and as reported by Libya Herald, the IMF report had stated that energy subsidies have become a significant burden on government finances in Libya. The study said the pervasive nature of subsidies has led to rampant corruption, smuggling, and a diversion of resources from essential public services. The paper identifies key barriers to reform, including opposition from vested interest groups and public apprehension regarding inflation and welfare loss. To address these challenges, a strategic reform plan is proposed, emphasizing a phased approach, a comprehensive communication plan and social protection measures to mitigate the adverse effects of subsidy removal. By taking these steps, Libya can transition towards a more sustainable framework that supports macroeconomic stability, the IMF study stated. . IMF study entitled 'Energy Subsidy Reform in Libya' concludes that reform is crucial as subsidies lead to overconsumption and premature resource depletion Fuel subsidies reached LD 60 billion, 30 percent of which is smuggled – therefore can invest just LD 5 bn in housing: CBL Governor Issa Audit Bureau 2023 Annual Report: 2023 state subsidies amounted to LD 68.5 billion Libya loses about US$ 12 billion annually in smuggled subsidies: Aldabaiba Decision to remove fuel subsidies has been taken: PM Aldabaiba ( NOC chairman Bengdara says his organisation is not a security force to combat fuel smuggling ( Aldabaiba forms ministerial committee to study mechanism for fuel subsidy reform – again ( Supreme Council for Energy adopts NOC 2023-2027 plan, including alternative energy project ( Supreme Council for Energy Affairs holds first meeting ( At Gharian cabinet meeting, Aldabaiba explains fall in black-market value of dinar and resounds alarm over fuel subsidies ( Fuel quantities, smuggling and subsidy reform – and increased oil production through PPP discussed at summit meeting ( Alternatives to fuel subsidies with cash payments delivered to Aldabaiba ( Prime minister Aldabaiba forms Ministerial committee to study reforming fuel subsidies, orders payment of family grant, increases pensions ( Libya's Economic Reform Salon proposes reforms for the country's fuel subsidies | ( Fuel subsidy reform proposal presented to Serraj government | ( Libya reduces subsidies on commercial-use kerosene | ( Subsidies are seen as an entitlement by Libyans: GNA Planning Minister | ( Government to reduce petrol subsidies | ( Cash for goods subsidy reform adopted by Tripoli authorities | ( Subsidy reform: petrol prices to be increased by 200% | ( 2014 Budget commits government to subsidy reform by Jan 2015 | ( The 2014 Budget: Subsidies up – despite deficit and oil exporting crises | ( 2014 budget expected to be LD 68.59bn – salaries and subsidies shoot up | ( Unemployment, subsidies, undiversified economy, stifled private sector – problems of Libyan economy: WB | ( Fuel subsidies removed over 30 months in three stages – Economy Minister Abufunas | ( Subsidy reform: Smugglers are the ones prospering from subsidies – Zeidan | ( Cabinet meeting forms committee on subsidies – Zeidan | ( Oil minister says fuel subsidies to go by 2016 | (
