Libya seeks to reduce fuel imports

Libya is working to cut its reliance on imported fuels, which has been straining its domestic supply. The National Oil Corporation (NOC), the country's state-owned oil company, is preparing to launch a new gasoline production unit at the Sirte Oil Company.

New production unit nears launch

The NOC announced final preparations for the launch of the new unit, which is part of its broader strategy to boost national fuel production. However, the company has not yet shared details about the facility's capacity or technical capabilities.

Fuel demand expected to rise

Analysis firm Kpler predicts that Libya's demand for road fuels could reach 250,000 barrels per day by 2026, with over 150,000 barrels per day expected to be imported. This growing demand has led to long lines at gas stations in major cities like Tripoli and Sebha.

Supply shortages persist

Daily gasoline consumption in Libya is estimated to range from 6 to 8 million liters, with some days seeing consumption as high as 11 million liters. To manage the shortage, Sebha reintroduced a barcode system to control access to fuel stations after several days without deliveries.

Logistical issues and smuggling blamed

Authorities cite logistical challenges and fuel smuggling as the main causes of the supply crisis. Smuggling has been a significant problem, with estimates suggesting that more than half of fuel purchases were diverted between 2022 and 2024, leading to losses of nearly $20 billion.

NOC aims for self-sufficiency

The NOC has set ambitious goals to achieve self-sufficiency in gasoline by 2037 and in diesel by 2034. To support these goals, the company has taken full control of the Ras Lanuf refinery, which has been idle since 2013, and plans to restart it within 6 to 12 months with a $60 million investment in maintenance.