Bread prices continue to rise – bakeries could close down if they are not allowed to adjust prices

Libyan bakeries are facing an existential crisis as soaring costs for essential ingredients and fuel threaten their survival. The head of the Higher Committee for Monitoring Bakeries, Ali Abu Azza, explained that bakery owners are not to blame for the recent bread price increases.

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Since the beginning of the year, bakeries have been suffering from the high price and fluctuating availability of flour, without any solutions or support being offered by the relevant authorities.

Since the start of the year, bakeries have grappled with the escalating and unpredictable cost of flour, receiving no support from authorities. The situation worsened in April when subsidized diesel quotas were cut by half. This reduction hampers bakeries' ability to manage power outages and expand production.

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The prices of raw materials and services have increased significantly. Yeast and packaging prices have risen by more than 150%, in addition to increased water costs and a doubling of flour transportation and labour costs.

Abu Azza highlighted that the prices of raw materials and services have surged by 150%. Yeast and packaging costs have more than doubled, alongside increased water expenses and a doubling of flour transportation and labor expenses. He clarified that bakery owners purchase operational necessities from the parallel market and are not seeking subsidies. Instead, they urge the government to stabilize the exchange rate and the dinar's value to ensure price stability.

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Rather, he said they are asking the government to stabilize the exchange rate and the value of the dinar so that everyone knows their rights and so that bakeries can adhere to price stability.

"We either adjust the weights and prices of bread to cover operating costs and meet debt obligations, or we close completely and abandon the profession," Abu Azza warned. The survival of many bakeries now hinges on the government's response to their calls for price adjustments and economic stability.

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He said they either adjust the weights and prices of bread to cover operating costs and meet debt obligations, or they close completely and abandon the profession.