Turkey increases gas prices by 48.4%

ISTANBUL: Turkey has raised natural gas prices by 48.4 per cent for large industrial and commercial organisation subscribers for November, while experts warned of higher inflation rates.

The latest hike was announced by Turkey’s BOTAS Petroleum Pipeline Company, which also revealed that the tariff for electricity generation plants for the same month was increased by 46.82 per cent.

“Since the beginning of 2021, the consumers around the world are exposed to exorbitant energy prices due to the extraordinary and exceptional fluctuations in the markets,” BOTAS said in a statement.

Therefore, in November, it became necessary to make a regulation “at the minimum level within the framework of possibilities”, it added.

Mustafa Sonmez, an economy writer, warned that the hikes in the natural gas received in October and November would cause an increase in the prices of “every item from top to bottom, especially electricity”.

Sonmez told Xinhua at an inclusive interview that the latest surge will give the already high inflation rate another push, which was recorded at 19.58 per cent in September.

Turkey had raised natural gas prices by 15 per cent for industries and electricity generation plants for October. The winter months will be challenging, as the households will avoid using electricity, he said.

“[The] people will have difficulties in meeting their basic needs,” he stressed, adding that the problems related to unpaid electricity and natural gas bills will also surge in the upcoming period.

Sonmez also said that exorbitant energy bills will negatively affect Turkey’s agricultural sector and the food sector, which are 70 per cent dependent on imports.

“Expensive inputs in agriculture will make farmers unable to produce,” and the people will face more surge in the prices, he said.

Rifat Hisarciklioglu, president of the Union of Chambers and Commodity Exchanges of Turkey, and vice president of Euro chambers, also warned about the increase in the production costs and higher inflation.

“Turkey needs more production, investment, and employment,” he said on his Twitter account, adding: “We should support production and investment more and protect the competitiveness of our industry.”

The industrial tariff for natural gas has been increased 147.5 per cent since the beginning of this year, according to the organised industrial zones supreme organisation.