A study prepared by a team funded by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) and the United Nations High Commissioner for Refugees (UNHCR) showed a sharp rise in the prices of basic commodities in the Libyan markets.
The study confirmed that the cities of southern Libya are the most affected by the high cost of living. The cost of a basket of basic foods for a family of five for a month ranges between 900-1,000 dinars in the south. While prices ranged between 800-900 dinars in eastern and western Libya.
Since March 2020, prices in general have increased by 44%. The then rate of increase in the west reached 50.8 %, in the east it was 36%, and only 10% in the south.
Last month, Libyan Economy Minister, Mohamed Al-Hwaij said that Libya was “seeking a transformation from a rentier economy dependent on oil by more than 90%, to diversified sources of income.”
During an interview with Al-Jazeera, he explained that the “conditions for recovery are security and political stability, and the implementation of economic and financial reforms.”
He added that his ministry has “set a plan for short and long-term recovery that focuses on diversifying the economy, and moving away from an oil-dependent economy.”
“Libya is a completely free market because customs are low, and the market is open to the private sector, so prices are lower than global prices,” he explained. As well as noting that the “difference in prices is caused by the devaluation of the exchange rate, and not a real increase in prices.”
Notably, Libya’s Parliament-designated Prime Minister, Fathi Bashagha said his government will end the financial corruption of the incumbent Government of National Unity (GNU).
Bashagha cited the recent Fiscal Transparency Report of the US Department of State, which called out financial corruption in the GNU. He vowed that his government “will work to end this fraud and abuse, and focus on accountability, transparency, and compliance throughout the government and operate under a budget approved by the Libyan Parliament.
Bashagha stressed that the National Oil Corporation (NOC) must be made independent. “Libya’s natural resources must be preserved through a clear management mechanism that directly benefits the Libyan people. Democracy depends on fiscal stability,” he concluded.