Libyan warplanes have targeted the oil-rich city of Ras Lanuf as forces loyal to Colonel Muammar Gaddafi launched counter-strikes in an attempt to take back strategic towns, Press TV reported.
The fighter jets targeted a checkpoint in the city on Sunday. However, revolutionary forces pushed back the warplanes by firing anti-aircraft guns.
At least two people were killed and 30 others were injured in the bombing.
Fighting is also underway in the eastern town of Ben Jawad, where 11 people including one French journalist were reportedly wounded.
Gaddafi-ordered airstrikes also targeted a convoy of revolutionary fighters heading toward the city of Sirt.
Earlier Libya's state TV claimed pro-Gaddafi forces had retaken control of Ras Lanuf, the western city of Misratah and the eastern city of Tobruk.
Protesters rejected the claim, saying they are in full control of the said cities. Independent sources have confirmed that the revolutionaries are still in control of these cities.
Meanwhile, Libya's neighbors say they are prepared for a new tide of refugees fleeing the situation in the country.
Tunisia's Red Crescent Organization says it is expecting new arrivals of around 10,000 refugees each day. Algeria says it has increased its reception capacity for refugees from Libya.
Immigration officials say over 190,000 people mainly migrant workers have left Libya so far.
According to witnesses, thousands of migrant workers heading to Tunisia are still stranded on the Libyan side.
This comes as the UN says the flow of refugees has decreased dramatically in recent days, raising fears that civilians are trapped in the middle of combat zones.
Before the revolution, some 2.5 million foreigners worked in the country.