Türkiye raised electricity and natural gas prices for households by about 20 percent and for the industrial sector by about 50 percent, adding to the pressures on inflation that reached nearly 80 percent in July.
According to Reuters, the increases are expected to raise inflation in Türkiye by 0.8 percentage points. Meanwhile, higher industrial prices indirectly raise inflation as producers pass costs on to consumers.
Türkiye’s Energy Regulatory Market Authority explained that it increased household electricity prices by 20 percent, public sector and service prices by 30 percent, and industrial sector prices by 50 percent.
On the other hand, the state-owned energy-importing company Botaş announced a 20.4 percent increase in the price of natural gas for domestic use, a 47.6 percent increase for small and medium industrial production companies, and a 50.8 percent increase for large industrial users.
According to Botaş, the price of gas used to generate electricity has increased by 49.5 percent.
Both the Authority and Botaş blamed the price increase on the Ukraine conflict and global events, including the COVID-19 pandemic.
Türkiye‘s natural gas and oil needs are almost entirely met by imports. The rise in global energy prices this year, as well as the lira’s sharp drop – 44 percent in 2021 and more than 27 percent this year — have pushed up local prices.