Libya has handed major fuel supply contracts to leading Western energy trading firms, marking a clear pivot away from Russian refined fuel imports as the North African nation reshapes its oil industry.
According to industry sources cited by Reuters, companies including Vitol, Trafigura, and TotalEnergies have secured the right to supply gasoline and diesel cargoes to Libya through recent tender rounds.
The development strengthens Western participation in Libya’s downstream fuel market while gradually reducing Moscow’s influence.
Libya, Africa’s second-largest oil producer, currently pumps about 1.4 million barrels of crude per day.
However, limited domestic refining capacity forces the country to rely heavily on imported fuel.
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Since the 2011 fall of longtime leader Muammar Gaddafi, Libya has been working to stabilise and rebuild its energy sector after years of political unrest and conflict.
Traders familiar with the process revealed that Vitol alone won contracts to deliver between five and ten gasoline cargoes monthly, along with additional diesel shipments.
Trafigura and TotalEnergies also secured allocations. Libya’s state-owned National Oil Corporation awarded further tenders to OMV, BGN, and Italian refiner Iplom.
The new system replaces Libya’s previous arrangement of swapping crude oil exports for refined fuel imports.
At the same time, authorities have launched upstream licensing rounds for the first time in nearly 20 years, aiming to raise production capacity to two million barrels per day.
The impact on trade flows is already evident.
Data from analytics firm Kpler shows that Russian fuel shipments to Libya have dropped to roughly 5,000 barrels per day in 2026, a steep fall from about 56,000 barrels per day in both 2024 and 2025, when Russia dominated Libya’s fuel supply.
Mediterranean suppliers have quickly stepped in to fill the gap. Italy has emerged as Libya’s largest fuel source this year, exporting approximately 59,000 barrels per day, much of it linked to facilities associated with Vitol and Trafigura.
Libya is also adjusting its crude export strategy.
Sources indicate that BGN’s once-strong export position may weaken as larger Western traders gain lifting rights. Swiss firm Transmed Trading has already secured several cargoes and is expected to continue loading shipments in the months ahead.
Earlier in January, Libya strengthened its Western alliances by signing a 25-year oil development agreement with TotalEnergies and ConocoPhillips, a deal valued at over $20 billion in foreign-backed investment.
Taken together, the fresh tender awards and long-term upstream agreements reflect a decisive reorientation in Libya’s energy partnerships reinforcing Western commercial presence while steadily reducing Russia’s once-dominant role in the country’s fuel supply chain.
