A new investigation has uncovered a massive, state-sanctioned fuel smuggling operation that drained approximately $20 billion from Libya’s public coffers over a three-year period. The scheme, which escalated sharply between 2022 and 2024, represents a systematic plundering of the nation’s primary revenue source.
According to the findings, politicians and security leaders, rather than combating organized crime, were central to orchestrating the illegal enterprise. The operation involved swapping domestically produced crude oil for imported refined fuel. Instead of being sold at subsidized prices within Libya, this fuel was illicitly exported for enormous private profit.
The report highlights that fuel imports surged to unprecedented levels, far exceeding any plausible domestic need. By late 2024, daily imports had more than doubled compared to early 2021. Investigators estimate that in 2024 alone, over $6.7 billion worth of fuel was smuggled out of the country—funds that could have more than tripled national spending on healthcare and education.
The illicit trade has had severe domestic consequences, causing fuel shortages that force citizens to pay higher prices on the black market. Furthermore, the smuggling has deprived the state of crucial dollar revenues and compromised the integrity of its national oil institution.
The report calls for an international investigation into the oil officials at the heart of the enterprise and for sanctions against those responsible. It concludes that the scale of the operation indicates it was a coordinated strategy to divert national wealth, rather than a mere symptom of weak governance.
