Libya Shuts 490 Petrol Stations Over Alleged Smuggling
LIBYA · ENERGY
Key Facts
—What happened: On 2 September, Libya’s Tripoli-based government closed 490 petrol stations over alleged fuel smuggling.
—How big it is: About 365 stations were approved to keep operating, based on what the ministry calls actual need.
—What it means: The closures target smuggling, which thrives because subsidised fuel is far cheaper than market prices.
—The catch: The closures are not permanent; stations can reopen if they meet approved specifications, the minister said.
—Who it hits: The order applies in western Libya, not the east, which is under a rival administration.
—What comes next: Watch whether the closures hold and whether fuel demand falls from its post-Eid spike.
On 2 September, Libya’s Tripoli-based Government of National Unity announced the closure of 490 petrol stations over alleged fuel smuggling. The interior minister said no station will open unless it meets approved specifications.
Why Libya petrol stations are closing
On 2 September, the Interior Ministry of Libya’s Tripoli-based Government of National Unity announced the closure of 490 forecourts. The move targets stations accused of involvement in fuel smuggling.
Major General Emad Trabelsi said no station opens unless approved. Closures are conditional, not permanent.
The order applies in western Libya, where the Government of National Unity has authority. The east is controlled by a rival administration, so the closures do not extend there.
The demand spike that raised alarms
After Eid al-Adha, Libya’s petrol demand surged in early June. NOC chief Masoud Suleiman said daily distribution hit 9-9.5 million litres, versus 6.5 million normally.
Suleiman attributed the spike to holiday travel and panic buying. The jump of about 46 percent was not seen as a sign of smuggling by the NOC, but it strained the system.
The August shortage that followed was separate, and the government responded with emergency diesel supplies.
The minister’s blunt words on smuggling
At a cabinet meeting in Zliten on 19 July, Trabelsi said he ‘cannot clash with other security agencies and state entities. He called diesel smuggling ‘blatant and well-known.’
His remarks were an unusual public acknowledgment of the problem. But they were not a direct admission that state entities smuggle fuel.
The closures are an attempt to cut off the retail end of the smuggling trade, which the minister says is widespread.
The subsidy gap that fuels smuggling
Libya sells diesel at an official price of 0.15 Libyan dinars per litre. During the August shortage, the black-market price peaked at 8.00 dinars per litre, a gap of more than fifty times.
That gap makes smuggling highly profitable. In 2025, Central bank governor Naji Issa said fuel subsidies cost 60 billion dinars (about US$7 billion), with 30 percent smuggled out.
Until the price gap narrows, the incentive to smuggle will remain, regardless of station closures.
Security threats to fuel infrastructure
A drone crashed near a Tripoli fuel depot on 3 September. Brega Petroleum Marketing Company reported minor damage to pipelines and two tanks.
No casualties were reported, and supply was not interrupted. Technical teams drew down fuel levels in the affected tanks as a precaution.
That attack followed a drone strike on 11 August that caused a large fire at the Zawiya refinery complex. Fuel infrastructure has become a target.
Oil production remains strong
Libya’s crude oil production stood at about 1.44 million barrels per day in late June, according to the National Oil Corporation. Including condensate, a lighter form of oil, total output was close to 1.49 million barrels per day.
That production is vital for Libya’s budget, which relies heavily on oil revenue. The fuel smuggling problem does not directly threaten output, but it drains state finances.
The government’s crackdown on petrol stations is a signal that it is willing to act against networks that have operated with impunity.
Two governments complicate enforcement
Libya has two rival administrations: the Government of National Unity in Tripoli and a separate government in the east. Fuel distribution crosses that divide, but the closure order only applies in the west.
Smuggling routes run south into the Sahel and north by sea, often involving armed groups. Closing a petrol station does not close a smuggling route.
The National Oil Corporation has largely stayed neutral in the political split, making its statements a reliable source on the sector.
What to watch next
Watch whether the 490 closures hold through the autumn, or whether stations quietly reopen after meeting specifications. Also watch daily fuel demand: if it falls back toward 6.5 million litres, the crackdown may be working.
The government’s next steps will show whether it can enforce its rules against powerful smuggling networks.
Frequently Asked Questions
How many Libya petrol stations have been closed?
On 2 September, the Tripoli-based government closed 490 filling stations over alleged fuel smuggling. About 365 stations were approved to keep operating.
Will the closed stations reopen?
Interior Minister Emad Trabelsi said no station will be permitted to open unless it meets approved specifications. That means stations can reopen if they comply.
Why is fuel smuggling a problem in Libya?
Fuel is heavily subsidised, so it is much cheaper than on the open market. Smugglers buy subsidised fuel and sell it abroad or on the black market for a large profit.
Did a drone attack damage Libya’s fuel infrastructure?
Yes, on 3 September a drone caused minor damage to pipelines and two tanks at a Tripoli depot. Brega Petroleum Marketing Company reported the damage.
What is the current fuel demand in Libya?
In early June, after Eid, petrol demand spiked to between 9 and 9.5 million litres per day. The usual rate is about 6.5 million litres.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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