Libya oil power struggle intensifies as national oil corporation expands control

A growing power struggle over oil revenues is reshaping Libya’s political and economic landscape as the National Oil Corporation expands its control over key financial flows. The development signals a significant shift in how the country manages its most critical resource.

The National Oil Corporation has moved to take over fuel purchasing and control access to foreign currency, traditionally managed by the Central Bank of Libya. This change effectively sidelines one of the country’s most important financial institutions.

Control over oil income has long been central to Libya’s fragmented political system, where rival authorities compete for legitimacy and resources. By consolidating financial authority, the oil company strengthens its influence within this divided governance structure.

Libya’s economy depends heavily on oil exports, making revenue management a decisive factor in determining political power. Any shift in financial oversight therefore carries immediate consequences for both governance and economic stability.

Analysts suggest that this move could alter the balance of power between competing factions, particularly those based in eastern and western Libya. Control of funds allows institutions to finance operations, secure alliances, and maintain administrative authority.

The development also raises concerns about transparency and accountability, as overlapping institutions compete for control without a unified national framework. This fragmentation risks further complicating efforts to stabilize the country’s economy.

Meanwhile international observers continue to monitor the situation closely, as disruptions in Libya’s oil sector can influence global energy markets. Stability in production and revenue flows remains essential for both domestic recovery and international supply chains.

Ultimately the intensifying struggle underscores a fundamental reality in Libya’s political system: control over oil wealth often determines control over the state itself. The outcome of this shift could define the next phase of Libya’s ongoing political transition.

[Source: The Guardian]