The Attorney General’s Office reported yesterday that the Sebha Court of Appeal Public Prosecutor, along with members of the Joint Security Committee – Southern Region, charged a group of people in three shops used by a criminal group, using Sebha Municipality as a centre, for managing smuggling fuel and food to neighbouring countries.
The Public Prosecutor ordered their heavy goods vehicles (HGV), fuels and food commodities to be seized and closed the location of the prohibited activity.
The accused used 173 vehicles prepared for smuggling fuel and were found in possession of 1,742 bags of sugar 27,463 bags of flour, 81,743 boxes of pasta and 200 boxes of cooking oil. Some of these quantities were loaded onto trucks ready for smuggling abroad, the Attorney General reported.
The Attorney General’s Office said this comes as part of its measures aimed at confronting smuggling activity and illegal trade in fuel and food commodities.
Exports need licences
It must be noted that exports from Libya need an export licence, with many goods restricted. The above listed food items are imported through official bank letters of credit at the official (and best) exchange rate.
These food commodities are meant for domestic consumption and to keep local food prices low – and not meant for reexport. These goods are smuggled to all of Libya’s neighbouring countries, exhausting Libya’s foreign reserves, raising local prices, and causing the black-market exchange rate of the Libyan dinar to rise. This leads to the rise of the import costs and sale price of other imported non-food products.
With regards to fuel, Libya is a net importer of fuel as its refineries do not have enough capacity to meet its local demand. Moreover, the fuel it imports using its much-needed hard currency, is heavily subsidised by the state. This high subsidy has made it an irresistible commodity for massive industrial scale smuggling to Libya’s neighbouring countries – to the extent that fuel destined for petrol stations is smuggled instead – leaving citizens unable to obtain fuel at official prices.
State security personnel and militias are involved in the smuggling. Many have become overnight millionaires – money laundering their ill-gotten gains in the Libyan market, causing inflation in the property market and in general.
