Australian Rodney Faggotter finished 9th on stage three and now sits 11th overall, 40:24 mins off the lead.
"It's been a pretty good day for me," Faggotter said. "I had a good starting position and managed to pass a couple of riders that had issues right off the start. I had no navigation problems and managed to retain a good race pace until the end of the special stage. I'm happy with how things are moving on at this rally.
"I'm learning all the time and getting more comfortable as the days go on. Some of the other riders pushed hard during the first two stages and now they're getting tired. I get more familiar to the stony tracks so I can push more now. I feel good and I'm looking forward for the remaining two stages."
The Morocco Rally, the final round of the FIM Cross Country Rallies World Championship concludes with stage five on Friday, when the title will also be decided.
Main Photo: Toby Price
Credit: Marcin Kin
Results Stage 2 OiLibya Rally 2016
1. Paolo Goncalves (POR), Honda, 3:40:45 h
2. Toby Price (AUS), KTM, +45 sec
3. Ricky Brabec (USA), Honda, +1:15 min
4. Sam Sunderland (GBR), KTM, +2:06
5. Kevin Benavides (ARG), Honda, +4:05
Results Stage 3 OiLibya Rally 2016
1. Kevin Benavides (ARG), Honda, 3:13:05 h
2. Toby Price (AUS), KTM, +51 sec
3. Matthias Walkner (AUT), KTM, +1:04 min
4. Sam Sunderland (GBR), KTM, +1:28
5. Pablo Quintanilla (CHI), Husqvarna, +3:00
Standings OiLibya Rally 2016 after 3 of 5 stages
1. Price, 6:55:26 h
2. Sunderland, +1:58 min
3. Benavides, +2:29
4. Quintanilla, +11:16
5. Helder Rodrigues (POR), Yamaha, +15:06