Libyan oil and the limits of Italian fleet expansion

If Italy found Libyan oil in the mid-1920s and built three new capital ships, could it also build fifty percent more cruisers in each class?

Possibly, but it would need substantial industrial expansion, treaty allowance, and choices about which older ships to replace or rebuild.

The counterfactual gives Italy Libyan oil in the mid-1920s, three new capital ships, and a proposal for fifty percent more cruisers in each class. Building the capital ships would probably displace some cruiser construction unless Italy also expanded its infrastructure. A larger program is considered plausible as part of an ambitious national expansion policy, but it would require substantial money and treaty allowance. Replacing older ships when permitted, instead of reconstructing them as Italy did historically, could free some yard capacity.