Baku:Institutional and political divisions in Libya have significantly impacted the country's economic situation, leading to a depreciation of the dinar and a rise in commodity prices.
According to Libyan News Agency, Tetteh, in her briefing to the UN Security Council, highlighted the erosion of purchasing power among Libyans due to a 14 percent depreciation of the dinar and a 3.8 percent rise in commodity prices in August.
Tetteh warned of the increasing issue of fuel smuggling, noting that 30 to 40 percent of subsidized fuel is being diverted for smuggling, resulting in losses exceeding $4.4 billion. Protests by the Petroleum Facilities Guard have further disrupted the energy sector, causing a loss of about one million barrels of oil, valued at $100 million.
The UN envoy pointed out that attacks on oil infrastructure might lead the Security Council to consider measures against those undermining Libya's economic stability. She also mentioned that the rise in global fuel prices has exacerbated smuggling, particularly of diesel, with Libya importing 8.15 million tons of fuel at a cost of $8.9 billion from January to September 2026.
Tetteh also emphasized that the increasing cost of living is causing public discontent, as evidenced by strikes in the education and health sectors, with the education sector strike delaying the start of the school year for approximately 1.6 million public school students.