The head of the Bakery Union in Tarhuna, Adel Al-Qayyas, has warned that local bakeries may be forced to shut down if the surge in flour prices continues, with ten bakeries already closing due to financial losses.
In comments made to the Qatar-funded broadcaster Libya Al-Ahrar, Al-Qayyas stated, “We are currently operating at a loss—ten bakeries have already shut their doors. If flour prices remain high, the rest will follow.”
Al-Qayyas explained that the cost of flour has skyrocketed to LYD 255, while the price of cooking oil has also risen sharply to LYD 110, making it increasingly difficult for bakeries to remain operational.
The warning highlights growing economic pressure on local food producers in Libya, as inflation and supply chain issues continue to impact essential goods.
Libya has been in chaos since a NATO-backed uprising toppled longtime leader Muammar Gaddafi in 2011. The county has for years been split between rival administrations.
Libya’s economy, heavily reliant on oil, has suffered due to the ongoing conflict. The instability has led to fluctuations in oil production and prices, impacting the global oil market and Libya’s economy.
The conflict has led to a significant humanitarian crisis in Libya, with thousands of people killed, and many more displaced. Migrants and refugees using Libya as a transit point to Europe have also faced dire conditions.
The planned elections for December 2021 were delayed due to disagreements over election laws and the eligibility of certain candidates. This delay has raised concerns about the feasibility of a peaceful political transition.
Despite the ceasefire, security remains a significant concern with sporadic fighting and the presence of mercenaries and foreign fighters. The unification of the military and the removal of foreign forces are crucial challenges.
