Libya’s Ministry of Economy and Trade has accused several importing companies of inflating prices by using the parallel exchange rate, despite having access to foreign currency at the Central Bank’s official rate.
In a statement issued on Sunday, the ministry said that a number of firms that benefited from foreign currency allocations at the official rate nevertheless set their selling prices based on the black-market dollar rate, increasing costs for consumers.
According to the ministry, the companies involved operate mainly in the import of vehicles, transport equipment and tires. Although they obtained letters of credit at the official rate guaranteed by the Central Bank of Libya, these firms allegedly marketed their products using the dollar rate prevailing on the parallel market, in clear breach of existing regulations.
The statement noted that official Central Bank data show more than 820 million dollars in oil revenues were mobilised in recent months to finance imports at a subsidised rate of around 6.20 dinars per dollar. However, some companies are said to have applied a parallel rate close to 10 dinars per dollar when pricing their goods, resulting, according to the ministry, in an undeclared markup of about 60 percent borne by consumers.
The ministry said such practices undermine the original purpose of subsidies, which are intended to support purchasing power and living standards. Oil revenues, it added, were effectively converted into private profits by companies buying foreign currency at low cost and selling goods at prices aligned with the parallel market, to the detriment of citizens—particularly low-income households.
In response, the ministry warned that correcting these distortions will require close coordination between fiscal and monetary policies, as well as stricter microeconomic measures. These include stronger competition rules, greater transparency in subsidy mechanisms, tighter price controls and clearer identification of the ultimate beneficiaries of subsidised foreign currency.
Reaffirming its commitment to consumer protection and market reform, the Ministry of Economy and Trade called on all relevant institutions to support these efforts. The statement was accompanied by lists of companies involved in the import of vehicles, transport equipment, as well as automotive batteries and tires.
MK/AK/Sf/lb/as/APA