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Al-Solh speaks to Al-Bilad program about details of gasoline subsidy replacement

Al-Bilad program on 218News discussed Sunday the removal of fuel subsidies and the payment of value to the citizens, in addition to whether or not this decision would be correct.

The Head of the expert committee said to the Minister of State for Economic Affairs, Dr. Ali El-Solh: “First, the term subsidy replacement must be clarified, not the subsidy removal, and the replacement began today with the Prime Minister’s decision to raise and address the salaries of Libyans.”

He continued: “In the past, we used to talk about the problem of cash differences between salaries, today we targeted the basic salary of the citizen and we mean social security salaries and others, provided that an increase in salaries comes to citizens who are not benefiting from the subsidy, except for 25% of the total amount, we are talking about processing a file and not lifting the subsidy.”

The Minister explained that prices will initially rise by 10%, but this percentage can be compensated in two aspects. A combination of regular and credit or shipping methods.

The program asked: “Will this alternative be suitable for the citizens in the medium term?” Ali Solh’s response was: “We are now dealing with important problems by targeting the equilibrium price at the Central Bank of Libya, which said in the past it was targeting prices at three dinars and is responsible for the purchasing power of the Libyan dinar.

Ali Al-Solh believes that the absence of the Central Bank from the meeting of the Committee on the Replacement of Subsidies had a negative impact, explaining that through the Central Bank, they can know the conditions of monetary policy and the method of targeting the exchange rate in the future.

“After setting the price of gasoline, at which we are targeting the exchange rate; the future global gasoline price together with the local exchange rate will determine the real price in the Libyan economy.” He added.

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