Tuesday, 6 May 2014

Libya plans "smart cards" to stop fuel smuggling


  • Gaddafi introduced subsidies on items from fuel to bread and airline tickets to discourage opposition
  • The subsidies, together with public salaries take up more than half of the national budget
  • Citizens have been subsidised buying fuel and smuggling into Tunisia for resale at higher prices
  • With shutdown of oil fields and ports since mid-2013, crude export revenues are drying up and the government is proposing a fuel card system to parliament that will limit the amount of subsidised fuel that can be bought
  • Egypt has recently implemented such a fuel card system

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