On Sunday, during an expanded meeting between Tripoli based Libyan prime minister, Abd Alhamid Aldabaiba, with the Chairman of the National Oil Corporation (NOC), Farhat Bengdara, and the Undersecretary of the Ministry of Economy, Suhail Bousheha, it was revealed that more than US$ 8 billion worth of fuel is used annually by electricity stations, while approximately US$ 4 billion is spent to supply fuel for other uses.
Form a committee to determine Libya’s annual fuel needs
At the meeting, Bengdara proposed forming a committee representing the Ministries of Economy and Trade, Planning, Finance, and Oil and Gas, as well as the General Electricity Company of Libya (GECOL) and the NOC, to determine the actual fuel needs for electricity and other fuel stations.
Fuel subsidies
At the meeting, the Prime Minister issued instructions to all relevant institutions to pay attention to this file, and to present the results within two weeks, to provide realistic figures on expenses, needs, and the general perception, whether for purchasing fuel or subsidies for citizens instead of fuel subsidies.
Brega responds to the PM’s demands
In an exclusive statement to Libya Herald, the Director General of the Brega Oil Marketing Company, Fouad Belrahim, who was present at the meeting with the committee formed to review the fuel subsidy mechanism, said Brega can meet the demands of the PM on this file.
He said that the meeting come in order to provide a detailed clarification on the observations of the Audit Bureau in its 2022 report regarding fuel and the large increase in the quantities of petrol and diesel consumed during 2022 compared to 2021.
The meeting aimed to put forward appropriate proposals regarding the fuel quantities supplied and how to distribute them and sought to reduce fuel smuggling operations.
Brega can meet market demand for fuel
Belrahim stressed that the Brega Company has the full fuel capacity to meet the needs of the Libyan market for petrol and diesel, whether for daily individual consumption or commercial and industrial consumption.
Moreover, in response to Bengdara’s criticism, Belrahim said Brega has the ability to develop sound mechanisms for fuel distribution in a fair manner, whether directly or through fuel distribution companies, according to scientific calculations and statistics that take into account the annual growth in demand for fuel due to the increase in the number of motorized vehicles or the expansion of commercial and industrial activity.
Brega can develop mechanism to determine Libya’s annual fuel needs
Belrahim pointed out the readiness of the Brega Oil Marketing Company to contribute to developing a clear mechanism to determine the quantities of fuel that the country needs during the year, in cooperation with the committee responsible for fuel, consisting of the ministries of economy, planning, finance, and the Oil and Gas and the General Electricity Company of Libya (GECOL), to determine the actual needs of power stations and for individual, industrial, and commercial uses.
Brega can provide fuel seamlessly and reduce smuggling
He said Brega Oil Marketing Company was ready to implement all practical solutions issued by the National Oil Corporation to provide fuel to citizens permanently and without the occurrence of any crises, as well as contributing to reducing smuggling and tightening control over the distribution of petrol and diesel and ensuring that consumers always obtain them.
It will be recalled that Brega is an NOC subsidiary and the fact that Bengdara suggested forming an independent committee to assess Libya’s fuel needs does not show confidence in his subsidiary.
Libya’s annual fuel bill rose to US$ 12 bn due to increased electricity production (libyaherald.com)
