Turkey raised electricity and natural gas prices on Friday, increasing household electricity prices by 25 percent and household natural gas prices by an average of 25 percent effective April 4, adding to an already high cost of living.
Turkey’s electricity regulator said power prices for public and private service sector subscribers connected at low voltage would increase by 17.5 percent, for industrial subscribers connected at medium voltage by 5.8 percent and for agricultural users by 24.8 percent.
In natural gas, state pipeline operator BOTAŞ said the increase would average 25 percent for household consumers, 18.61 percent for industrial users and 19.42 percent for electricity generation plants. Same-day coverage citing the new pricing schedule also said Turkey was moving to a tiered pricing system for residential gas users.
The move comes as Turkey faces higher energy costs linked to the regional war that began with US and Israeli strikes on Iran. Turkey is a major energy importer, and the conflict is expected to raise the country’s energy bill, even though strong hydroelectric output in March helped ease some pressure on gas demand for power generation.
The increase also points to strain on Ankara’s subsidy system. Finance Minister Mehmet Şimşek said last month that Turkey’s sliding-scale fuel pricing system would not be sustainable if high oil prices persist because it puts pressure on the budget.
The latest adjustment follows last year’s price increase, when Turkey also raised residential electricity prices by 25 percent, while leaving household natural gas prices unchanged at that time. That earlier move fed into inflation pressure, according to analysts. Turkey’s annual inflation rate stood above 30 percent in March, before the latest utility increase.
