Libya's HoR studies cash fuel subsidies
The House of Representatives is considering a shift to cash-based fuel subsidies, aiming to reassure citizens.
Libya's House of Representatives issued an official statement confirming that a study on changing from commodity-based fuel subsidies to a cash-based system is being considered to address economic imbalances. The House emphasized that this approach does not mean immediate abolition or replacement of subsidies.
The statement clarified that any decision to replace or reform the subsidy system will only be made after all necessary studies are completed and essential safeguards are in place. These measures are designed to protect citizens' rights, ensure fair access, safeguard living standards, and promote the nation's economic stability.
Libyan citizens fear they will pay for economic mismanagement since 2011, distrusting the state's ability to deliver promised cash subsidies due to past failures with public goods like salary payments and cash availability at banks.
Why it mattersLibyan citizens fear they will pay the price for economic mismanagement and distrust the state's ability to deliver promised cash subsidies.