Turkey announces massive hike in energy prices

Turkey has announced a massive hike in energy prices because of the country’s heavy reliance on energy imports amid a global surge in prices.

Turkey’s state-run BOTAS Petroleum Pipeline Company said natural gas prices for industries rise by 50 percent and those for households by 35 percent starting April 1.

The natural gas price for electricity production increase by 44.3 percent, it added.

Global consumers have been exposed to exorbitant energy prices because of the extraordinary fluctuations in the energy markets since the beginning of 2021, BOTAS noted.

Meanwhile, electricity prices for industrial use are raised by between 20.01 percent and 26.37 percent, Turkey’s Energy Market Regulatory Authority said Friday.

Over 70 percent of Turkey’s energy needs are reliant on imports, making the country vulnerable to fluctuating energy prices.

Turkey’s energy import bill increased by 181.8 percent year on year to 7.76 billion U.S. dollars in February, the Turkish Statistical Institute announced Thursday.

This is the second massive price hike in energy bills in the country this year. Natural gas prices jumped by 25 percent for residential use and 50 percent for industrial use on Jan. 1.

The sharp depreciation of the Turkish lira in 2021 also contributed to higher energy costs for consumers.

Households and businesses in Turkey have been plagued by rising energy bills amid decreasing purchasing power as the annual inflation rate surged to a two-decade high of 54.4 percent in February. ■

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