Increased energy prices will give a new boost to inflation, analysts fear
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As of September 1, electricity and natural gas prices in Turkey are rising for both industry and households, Reuters reports. The move will put further pressure on inflation, which reached 80% in July.
The country’s energy regulator set new electricity prices, which are 50% higher for businesses and 20% higher for households. In parallel, since the beginning of the first autumn month, the price of natural gas sold by the state-owned Botas has increased by 20.4% for households and by 47.6% for small and medium-sized businesses.
Large industrial customers of the gas company will pay 50.8% more expensive gas from September 1.
Botas specifies that the price of natural gas used to produce electricity is also increasing – by 49.5%.
In early August, Turkish President Recep Tayyip Erdogan met with his Russian counterpart Vladimir Putin in Sochi. The main topic of the talks was Syria, but after the meeting it became clear that Ankara has agreed to a change in payment terms for Russian natural gas and will translate part of the amounts into rubles.
Turkey is not considered a hostile country to Russia, as EU members are, and has no obligation to pay in rubles. Russian natural gas accounts for about 50% of the country’s total gas imports.
On June 1, Botas increased the price of gas for domestic consumers by 30%, for industry – by 40% for those with consumption up to 300 thousand cubic meters per year, and by 10% for large businesses. The energy regulator increased the price of electricity by between 15% and 25%, Al Arabiya recalls. Then the price of gas for industry was set at 571 dollars per 1000 cubic meters, and for households – 180 dollars per 1000 cubic meters.