Turkey on Monday raised natural gas prices by 48.40 percent for large industrial and commercial organization 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 percent.
“Since the beginning of 2021, consumers in 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 natural gas received in October and November would cause an increase in 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, recorded as 19.58 percent in September, another push.
Turkey had raised natural gas prices by 15 percent for industries and electricity generation plants for October. The winter months will be challenging as households will avoid using electricity, he noted.
“People will have difficulties in meeting their basic needs,” he stressed, adding that problems related to unpaid electricity and natural gas bills will also surge in the upcoming period.
Sonmez also pointed out that exorbitant energy bills will negatively affect Turkey’s agricultural sector and the food sector, which are 70 percent dependent on imports.
“Expensive inputs in agriculture will make farmers unable to produce,” and people will face more surge in prices, he said.
Rifat Hisarciklioglu, president of the Union of Chambers and Commodity Exchanges of Turkey, and vice president of Eurochambres, also warned about the increase in 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 by 147.5 percent since the beginning of this year, according to the Organized Industrial Zones Supreme Organization.