The Turkish energy regulator EPDK announced to households that their electricity will be 20 percent more expensive. For the public sector and the service sector, the price increase is even 10 percent higher, and for industry the price of electricity will rise by even 50 percent.
The state energy importer BOTAS then announced that the price of natural gas for domestic consumption would increase by 20.4 percent, for small and medium-sized industrial customers by 47.6 percent, and for large industrial customers by 50.8 percent.
BOTAS then increased the price of gas used for electricity production by 49.5 percent.
The increase in energy prices should lead to a further increase in inflation in Turkey, which reached almost 80 percent year-on-year in July. According to the calculation of the Reuters agency, this should be an increase of 0.8 percentage points.
Turkey’s central bank shocked the markets. It reduced the interest even with 80 percent inflation
Turkey is almost completely dependent on gas and oil imports to meet domestic demand. It also increased during the coronavirus pandemic, Reuters reported.
The price of natural gas for Turkish households has increased by 174 percent this year alone. In addition to the rise in global energy prices, this is also influenced by the weak domestic currency – the lira weakened by 44 percent last year, and by more than 27 percent so far this year.