Middlemen push up prices of essentials in Gaza

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Gaza, Israel-Hamas, Gazan city

In the war-torn streets of Gaza, the struggle for survival has reached new heights of desperation as middlemen exploit the crisis, pushing up prices of essential goods to staggering levels. The dire situation has left families like Wesam Shaath’s grappling with impossible choices as they navigate the harsh realities of daily life in the besieged enclave.

Taxi driver Wesam Shaath has become used to scouring the street stalls and shops of the southern Gazan city of Rafah for diapers for his twin baby boys.

Before the Israel-Hamas war erupted on October 7, 2023, he paid the equivalent of around US$6 for a box. Now he says vendors can charge up to US$55, which he cannot afford. In desperation, he has tried to make his own diapers for the twins.

“I tried to put ribbons and nylon on them, I tried more than one idea, but it didn’t work”, he told OCCRP. He struggles to afford even the most basic essential supplies for the babies, including formula milk.

Before the eruption of the Israel-Hamas conflict in October 2023, Shaath could afford diapers for his twin babies at a reasonable cost. However, the aftermath of the war has seen prices skyrocket, making it nearly impossible for him to provide for his family. The scarcity of basic supplies, including formula milk, has forced Shaath to resort to desperate measures, highlighting the profound impact of the crisis on Gaza’s civilian population.

The United Nations and various aid agencies have sounded the alarm, warning of acute food shortages and widespread deprivation among Gaza’s 2.3 million residents. The situation has been exacerbated by the hindrance of commercial goods’ entry into Gaza, primarily due to security checks imposed by Israel and logistical challenges within the territory.

However, the plight of Gaza’s inhabitants is further compounded by layers of profiteering within the commercial supply chain. Traders and officials have revealed a broken system rife with exploitation, where every step in the distribution process serves as an opportunity for middlemen to skim profits, leaving ordinary Gazans to bear the brunt of exorbitant prices.

At local markets like An-najmah in Rafah, the cost of food items has soared, making essentials unattainable for many families. Displaced individuals, already grappling with the trauma of displacement, now face the additional burden of food insecurity and economic hardship.

The route for importing goods into Gaza has become fraught with challenges, with delays and obstacles exacerbating the crisis. Palestinian traders have accused Egyptian logistics company Abnaa Sinai of monopolizing imports at the Rafah border crossing and inflating prices to exploit the dire situation. These allegations paint a grim picture of profiteering amid a humanitarian catastrophe.

Despite efforts by authorities to control prices and ensure equitable distribution, reports indicate widespread corruption and manipulation within the system. Traders allege that Hamas-run authorities undercut prices and enable a black market to thrive, further exacerbating the crisis for ordinary Gazans.

As Gazans struggle to afford basic necessities, warnings of a complete collapse in Gaza’s humanitarian situation grow increasingly dire. The international community must urgently address the root causes of the crisis, including the exploitation by middlemen and the obstruction of humanitarian aid, to prevent further suffering and loss of life in Gaza.

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