"Turkey raises electricity and gas prices by up to 50% starting in July"



 The authorities in Turkey have announced an increase in electricity and natural gas prices for households and families by 20 percent, while the increase is up to 50 percent for the industrial sector, a move that may increase inflationary pressures in the country.

According to what was reported by Sky News Arabia, it is expected that the increases will push inflation up by 0.8 percentage points, while the rise in industrial prices also indirectly leads to an increase in inflation, as producers pass on costs to consumers. The Turkish Energy Regulatory Authority stated that it raised household electricity prices by 20 percent, and by 30 percent for the public sector and services. Electricity prices increased by 50 percent for the industrial sector. The state-owned energy importer company, Botas, announced that it raised the price of natural gas for household use by 20.4 percent, and by 47.6 percent for small and medium-sized industrial production companies, and 50.8 percent for large industrial users. Botas clarified that the price of gas used in electricity production increased by 49.5 percent. The Energy Regulatory Authority and Botas attributed the price increases to the conflict in Ukraine and global developments, including the COVID-19 pandemic. Turkey relies almost entirely on imports to meet its natural gas and oil needs. The sharp increase in global energy prices this year, along with the sharp decline in the lira by about 44 percent in 2021 and more than 27 percent this year, led to price increases locally. Official data showed that inflation in Turkey accelerated more than expected to reach 75.45 percent on an annual basis during last May, compared to a reading of 69.8 percent in April, according to the Turkish Statistical Institute.
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