By:Northafricapost

Oil-rich but war-torn Libya is teetering on the edge of a fuel supply crisis, with more than $1 billion in unpaid dues for imported fuel threatening to disrupt deliveries and deepen the country’s economic woes.

The state-owned National Oil Corporation (NOC) has warned that international suppliers are growing increasingly reluctant to continue shipments without payment guarantees.

The mounting arrears, largely accumulated over the past year, reflect the broader dysfunction of Libya’s fractured political and financial institutions.

Despite being home to Africa’s largest proven oil reserves, Libya has long relied on imported refined fuel to meet domestic demand, due to its limited refining capacity. But the country’s ability to pay for those imports has been hampered by a budget deadlock between rival governments in the east and west, each vying for control of national revenues.

NOC, which has tried to remain neutral amid Libya’s political divisions, has been forced to dip into its own revenues to cover fuel costs. But those funds are running dry. Officials warn that unless the central bank releases emergency financing soon, fuel shortages could hit major cities within weeks.

The crisis comes as Libyans already face soaring food prices, power outages, and a deteriorating healthcare system. In Tripoli, long lines have begun forming at gas stations, reviving memories of past shortages that sparked unrest.

International observers say the situation underscores the urgent need for a political settlement and financial transparency. “Libya’s oil wealth should be a stabilizing force,” said one Western diplomat. “Instead, it’s being squandered in a zero-sum game between rival factions.”

As the summer heat intensifies and demand for electricity spikes, the risk of a full-blown fuel crisis looms large, one that could further destabilize a country still struggling to emerge from a decade of conflict.