This study aims to evaluate the impacts of fuel price deregulation on the efficiency and sustainability of the transport sector within the Libyan economy, with a field application focused on the Tawergha region. The study employs a descriptive-analytical approach, utilizing data collected through a questionnaire distributed to a sample of 63 transport drivers. Sixty valid questionnaires were retrieved for analysis, representing a high response rate. The results indicate that the transport sector relies heavily on subsidized fuel to minimize operational costs. Consequently, the deregulation of fuel prices is expected to lead to a significant increase in these costs, adversely affecting operational efficiency and the continuity of transport activities. Furthermore, the findings highlight a limited availability of alternative energy sources, posing a substantial challenge to achieving sector sustainability amidst shifting economic conditions. The study concludes by emphasizing the necessity of adopting balanced fuel price deregulation policies that account for both economic and social dimensions. It recommends expanding the use of alternative energy sources, enhancing investment in transport infrastructure, and fostering public-private partnerships (PPPs) to bolster the sector’s efficiency and long-term sustainability............ Keywords:......... Fuel Subsidies, Transport Sector, Operational Costs, Libyan Economy.