## Energy Subsidy Reform in Libya: Libya

_Selected Issues Papers, July 11, 2025_

## Source details

**Canonical URL:** [Energy Subsidy Reform in Libya: Libya](https://www.imf.org/en/publications/selected-issues-papers/issues/2025/07/12/energy-subsidy-reform-in-libya-568564)

## Other formats

- [Markdown version](/en/publications/selected-issues-papers/issues/2025/07/12/energy-subsidy-reform-in-libya-568564/index.md)
- [Structured JSON version](/en/publications/selected-issues-papers/issues/2025/07/12/energy-subsidy-reform-in-libya-568564/index.json)
- [Bundle manifest](/en/publications/selected-issues-papers/issues/2025/07/12/energy-subsidy-reform-in-libya-568564/bundle-manifest.json)

## Bibliographic details
- Authors: Mona S ElShazly
- Published: July 11, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229017121.018

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### Summary findings
- Energy subsidies have become a significant burden on government finances in Libya.
- The pervasive nature of subsidies has led to rampant corruption, smuggling, and a diversion of resources from essential public services.
- Removing subsidies without mitigation risks inflation and welfare loss for vulnerable households.

### Barriers to reform
- Opposition from vested interest groups.
- Public apprehension regarding inflation and welfare loss.
- Entrenched smuggling and corruption networks tied to subsidized energy flows.

### Proposed reform plan and measures
- Phased approach to subsidy removal to manage transition risks.
- Comprehensive communication plan to build public support and explain reform sequencing and benefits.
- Social protection measures to mitigate adverse effects of subsidy removal on vulnerable households.

### Intended outcomes
- Transition towards a more sustainable framework for energy pricing.
- Support for macroeconomic stability through reduced fiscal burden from subsidies.

### Publication and identification (from source)
- Pages: 13
- Volume: 2025
- DOI: https://doi.org/10.5089/9798229017121.018
- Issue: 094
- Series: Selected Issues Paper No. 2025/094
- Stock No: SIPEA2025094
- ISBN: 9798229017121
- ISSN: 2958-7875

*Mona S ElShazly. "Energy Subsidy Reform in Libya: Libya", Selected Issues Papers 2025, 094 (2025).*

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## Content in this bundle

- **Energy Subsidy Reform in Libya; IMF Selected Issues Paper No. 2025/094; May 30, 2025**
  - [Energy Subsidy Reform in Libya; IMF Selected Issues Paper No. 2025/094; May 30, 2025 (Markdown version)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025094-source-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Energy Subsidy Reform in Libya; IMF Selected Issues Paper No. 2025/094; May 30, 2025 (PDF)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025094-source-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/07/12/energy-subsidy-reform-in-libya-568564_