New Economic Crisis Looming from Unrest in Libya as Petrol Price Rises

Topics: Muammar al-Gaddafi, Humanitarian aid, World Food Programme Pages: 4 (945 words) Published: December 4, 2011
New economic crisis looming from unrest in Libya as petrol rises

Bulgaria is starting to feel the economic impact from Muammar Gaddafi's attempt to stay in power. Prices of basic foodstuffs have begun to sky rocket in Libya, as fighting between supporters and opponents of the dictator continue, but Libya is not the only country affected.

The price of petrol is reaching nearly 116 dollars a barrel, which is a 20 per cent rise in less than a week, Bulgarian National Television (BNT) reported on March 8 2011.

Petrol stations in Bulgaria are currently selling the A95 for 2.40 leva a litre while diesel is sold for more than 2.50 leva a litre, the report said. There are realistic fears that as the price of petrol in Bulgaria continues to rise, so will foodstuffs and other commodities.

"The global economy will be able to cope with the price of oil if it remains around the110-120 dollars a barrel mark. It will be a problem but the United States and Europe will manage to deal with it," Tsvetoslav Tsochev, a financial expert, told BNT.

"The real problems will begin as the price approaches the 130-140 level. Then major economies around the world will be hit by by a recession, especially as the prices of foodstuffs increase as well," he said.

The sting is expected to to be felt across the world, particularly among the poorer, and Bulgaria is no exception.

Libya's humanitarian crisis is already affecting vulnerable people across the world, Humanitarian Aid Commissioner Kristalina Georgieva said at the beginning of March, warning that the effects of rising oil prices were already being felt in the food sector and threatening to "push millions into hunger".

The UN's World Food Programme warned that Libya's food supply chain was "at risk of collapsing," especially in the eastern part of the country, which is controlled by Gaddafi's opponents, the website reported.

"I'm not just worried about the Libyans," Georgieva said, stressing that...
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