The Impact of Fuel Subsidy Removal on Operating Costs in the Transportation Sector:A Field Study of a Sample of Drivers in the Zawiyat Al-Mahjoub Area, Misrata City

Abstract

operating costs and the implications of subsidy removal for the continuity of activity within the sector. The research adopts a descriptive-analytical approach. Data were collected through a structured questionnaire specifically designed for this purpose. The questionnaire was distributed to a sample of 63 transport drivers operating in the Zawiyat Al-Mahjoub area in the city of Misrata, representing a statistical population of 75 individuals. A total of 60 valid questionnaires were retrieved and deemed suitable for analysis, reflecting a high response rate. The primary objective was to obtain accurate information regarding the extent to which fuel subsidies affect operating costs and how subsidy removal may influence the sustainability of transport activities.

The findings indicate that the majority of workers in the transport sector rely heavily on subsidized fuel to reduce operating costs. The removal of subsidies would lead to a significant increase in these costs, which could negatively affect the continuity of operations in the sector. The results also reveal a lack of viable alternatives to subsidized fuel at present, highlighting the need to explore alternative energy solutions in the future.

Based on these findings, the study recommends the development of alternative energy sources, the formulation of new subsidy policies, and increased public investment in transport infrastructure. It further emphasizes the importance of strengthening public–private partnerships to stimulate innovation and ensure the sustainability of the transport sector amid ongoing economic changes.