Libya faces fuel shortages and electricity crisis amid corruption allegations

Libya is facing a severe multi-sector crisis characterized by chronic fuel shortages, frequent electricity blackouts, and systemic financial corruption. Despite official reports from the Brega Petroleum Marketing Company indicating the distribution of hundreds of millions of liters of gasoline and diesel, long queues persist at service stations in Tripoli and other regions. Experts suggest a significant discrepancy exists between distributed volumes and actual availability, pointing to large-scale fuel smuggling into the black market and theft by organized networks.

The electricity sector is also in turmoil, with citizens facing prolonged power outages exceeding 24 hours in some areas during extreme summer heat. Compounding this, the electricity company continues to charge full monthly fees despite service interruptions, a practice described by former Central Bank officials as “theft with consent.”

Financial mismanagement and corruption are central to the instability. Audit reports indicate that while the National Oil Corporation generated billions in revenue, significant portions of these funds failed to reach the Central Bank of Libya. This lack of accountability, combined with institutional division and the influence of interest groups, has led to a sharp decline in the purchasing power of the Libyan dinar and widespread public protests against the current government.