A report from Chatham House on 10th October looks at Libya’s oil industry, saying that amid continuing violence and instability, up to one-third of oil goes missing from official supply chains each year, fuelling a black market that ultimately steals from state coffers at the expense of the population. Locals face shortage of fuel for heating and their motors. Libya’s oil refineries are supposed to be guarded by Petroleum Facilities Guards (PFG) units. But according to the chair of the National Oil Corporation, Mustafa Sanalla, PFG have ‘descended into local fiefs’. It is said that Libya’s Audit Bureau noted that the value of crude oil supplied to the refineries was approximately $2 billion in 2017, yet the value of the fuel actually received by fuel distribution depots, the next link in the supply chain, was only around $1 billion. The situation is also said to have underpinned the growth of sea-borne smuggling, allowing refined products enter the international fuel markets.
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