Libya – Rich in Oil, Leaking Fuel
Tim Eaton published with Chatham House a compelling research on Libya’s oil sector untitled “Libya – Rich in Oil, Leaking Fuel” in which he presents how up to one-third of Libya’s oil resource is stolen from the official supply chains supposedly controlled by state institutions, depriving Libya’s population. He recounts the persisting issue of fuel shortages experienced by Libyan citizens and the significant increase of illegal activities linked to the fuel sector. For Eaton, this phenomenon is a direct result of the governance and security crisis in Libya, he notes:
“Libya’s governance crisis exacerbates flawed governance structures within state-run and -owned institutions, providing ample opportunity to mask the diversion of fuels into the black market and for the individuals involved to make major profits while defrauding the state”.
In his conclusion, he advises against economic policies solely focused on the removal of subsidies to bring a halt to smuggling and theft but on a greater emphasis on transparency within the system and its institutions.
Click here to read the article.