Libya’s Government of National Unity (GNU) has sent an official letter to both the National Oil Corporation (NOC) and the General Electricity Company of Libya (GECOL), calling for immediate measures to address what it described as “growing distortions” in the subsidized fuel market.
The government issued urgent instructions aimed at regulating fuel consumption by industrial and service-sector facilities, warning of the consequences of the increasing reliance on private generators amid concerns over mounting pressure on the country’s energy subsidy system.
According to the government statement, recent changes to electricity tariffs for high-consumption facilities have prompted a number of factories, hotels, and companies to expand their use of private generators. This, in turn, has led to a significant rise in the consumption of subsidized diesel fuel and increased pressure on local fuel supplies.
The letter warned that the shift has resulted in the indirect depletion of the subsidy system, while also noting a growing number of requests to establish on-site fuel stations within industrial facilities, which authorities view as a potential avenue for the misuse of subsidized fuel.
The government called for a review of current diesel distribution policies for the industrial sector and the introduction of stricter controls to balance the needs of the economy with the stability of the electricity grid and fuel reserves.
It also stressed that no new licenses should be granted for internal fuel stations unless they meet enhanced regulatory requirements, while calling for the closure of any channels that could facilitate the diversion of subsidized fuel to unauthorized beneficiaries.
