The demise of the Libyan leader, Colonel Muammar Gaddafi is likely to pull down fuel prices on the world market, with analysts however saying it will take months for the impact to be felt as Libya’s oil industry needs to recover first.
Economic analyst, Mr. Rutendo Rutendo said with the departure of Col Gaddafi, a new pricing dispensation is likely to be witnessed, as the West will start to get the precious liquid at a give-away price.
“We foresee a situation whereby Europe will dictate the prices of oil which they really need from Libya,” he said.
Diplomatic expert, Ambassador Chris Mutsvangwa said the attack on Gaddafi was primarily for the oil, so the price will fall but Libyans will only be left to chew dust.
“Now they [West] removed the strongman of Libya and as things stand, western companies have already started pumping oil out of the country and not being accountable to anyone. They are now masters in the Libyan oil industry,” said Ambassador Mutsvangwa.
Under the Gaddafi era, Libyans were buying fuel at the cost of 14 cents per litre while for any oil sold, there was a percentage linked to every Libyan citizenâ€™s bank account.
Before the Libyan civil war, Libya exported 1,5 million barrels of oil a day, an equivalent of 2% of the global demand.
When Libya stopped exporting most of that oil 8 months ago, the price of fuel shot to US$114 a barrel.