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Turkey is raising significantly the prices of natural gas and electricity for all users, by up to 50% for industrial customers, due to the war in Ukraine and the global surge in energy prices.
The country’s energy regulator EPDK raised electricity prices for households by 20%, power prices for public and services sectors by 30%, and those for industry by 50%, Reuters reported on Thursday.
Furthermore, state energy company BOTAS raised natural gas prices for households by 20.4%, by 47.6% for small- to medium-scale industrial customers, and by 50.8% for large industry customers.
The hike in energy prices will further drive up inflation which was almost 80% in July. Turkey, which relies on energy imports for meeting most of its demand, is highly dependent on international energy prices.
This is yet another major hike in energy prices in Turkey, after a hike in June, and a previous one in April. In June, natural gas prices were hiked by 30% for households, by 16.3% for gas used in electricity production and by 10.2% for industry.
Still, Turkey continues to subsidize more than 80% of the price of gas used by households.
The latest energy price hike makes the gas and electricity prices for households higher by 174% so far this year. Gas prices for small- to medium-scale industrial users have been hiked by 277%, while gas prices for big industry consumers have seen a massive 379% jump this year, per Reuters estimates.
Soaring energy prices aren’t unique to heavily import-dependent Turkey. In the EU and in the UK, prices are also skyrocketing amid surging gas prices, limited Russian pipeline gas supply, lower nuclear power production due to extreme heat, and – at times – hot and still weather stifling wind power generation.
In the UK, for example, energy market regulator Ofgem announced last week an 80% hike in the energy price cap aimed at shielding consumers from price swings, which could plunge millions of households more into energy poverty.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.