The Libyan parliament has dismissed Prime Minister Ali Zeidan after a rebel held tanker with thousands of barrels of oil on board escaped a naval blockade.
Separatist militia have occupied three major ports in the east of Libya since August last year.
They want a bigger share of Libya’s oil revenue as well as autonomy for the Cyrenaica region.
The tanker ‘Morning Glory’ was the first fully loaded vessel to leave a rebel port since a revolt against against the government in Tripoli erupted in July.
Since the fall of Muammar Gaddafi in 2011 the Libyan government has been unable to exert authority over militias and tribesmen that helped in the dictators overthrow.
Defence Minister Abdullah al-Thinni has been named new interim prime minister.