Turkey raises electricity and gas prices by 50% for industry and 20% for homes
Turkish authorities raised electricity and natural gas prices for households and around 50% for industry on Thursday, putting further upward pressure on inflation, which hit nearly 80% in July. .
Utility price hikes are expected to push up inflation by 0.8 percentage point, according to a Reuters calculation, while rising industrial prices also lead to an indirect increase in inflation, as producers pass on the costs to consumers.
Turkish energy regulator EPDK said it had raised electricity prices for households by 20%, those used by the public and service sectors by 30% and those used in industry by 50%.
National energy importer BOTAS said it raised the price of natural gas for domestic use by 20.4%, 47.6% for small and medium industrial customers and 50.8% for large industrial users.
The price of gas used for power generation has been increased by 49.5 percent, BOTAS said.
Both bodies cited the conflict in Ukraine and global developments, including the COVID-19 pandemic, as reasons for the increases.
Turkey depends almost entirely on imports to meet its natural gas and oil needs and domestic demand has increased since the COVID-19 pandemic. Rising global energy prices this year, along with the sharp drop in the lira – 44% in 2021 and more than 27% this year – have fueled prices in the domestic market.
Household natural gas prices have risen 174% this year, small and medium scale industrial gas prices have risen 277% and large industry prices have risen 379%.
The state still subsidizes more than 80% of natural gas prices for households, BOTAS said Thursday.
Source: Reuters (Reporting by Can Sezer; Writing by Ali Kucukgocmen; Editing by Simon Cameron-Moore and Daren Butler)