Abdulkadir Özkan: "Making hikes permitted to the state, forbidden to tradesmen"

Abdulkadir Özkan: "Making hikes permitted to the state, forbidden to tradesmen"
Date: 3.1.2022 15:00

Milli Gazete columnist Abdulkadir Özkan writes on Turkey's economy. Here is the full article.

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In the last days of last year, they increased the prices due to the rapid increase in the value of the dollar and, accordingly, the cost of the products produced by some opportunists due to the increase in imported products.
 
In the meantime, there were also those who missed the point in raising prices, and the image of a robbery scheme based on pure opportunism began to emerge.
 
We expressed our criticism on this issue by saying that “the free market is not a free market”. As a result, the state curbed the rapid rise in the dollar, at least for now, with some of the steps it took. Of course, curbing doesn't mean the dollar's climb is over.
 
As a result of some decisions taken by the government, serious decreases occurred in the dollar in a short time, and all authorities began to inspect the market. Labels began to be checked, and penalties were imposed on those who made an unfair price increase.
 
In fact, there was no reaction to the application up to this point. In fact, a statement from Turkish Industry and Business Association (TÜSİAD) against these inspections even received a reaction from the grassroots. Let's just say that although there are some reductions in prices caused by the rapid appreciation of the dollar, it is still not possible to say that there has been a serious decline in prices in the market in parallel with the decrease in the dollar, perhaps due to the free market rules. Some prices, which are expected to decrease, also remain in place. On top of that, even price increases for some products are on the agenda.
 
I am not going to review these ups and downs in the market. This is the job of the rulers of the country. However, chain markets and tradesmen are inspected in every corner of the country, and while the penalties for determining exorbitant prices continue, the increase made by the state suddenly came to the agenda.
 
The rulers, who argued that prices should be withdrawn in the market because the dollar fell, and that this must happen, started the opposite of what they said. Increases in fuel prices began to be made one after the other.
 
Of course, the fact that these price increases trigger inflation is another dimension of the business. Because it does not seem possible to avoid the reflection of the increase in fuel prices on all areas of life.
 
For example, there was a gradual increase in electricity, ranging from 52 percent to 130 percent. Natural gas increased by 25 percent in residences and 50 percent in industry. Of course, it will not be possible for these hikes not to be reflected in the prices, meanwhile, after the cancellation of the fuel price hikes announced during the first decline of the dollar, new hikes soon began to be implemented.
 
LPG was increased by 78 cents, diesel oil was 1 lira 29 cents, gasoline was raised by 1 lira 29 cents in two successive hikes, meanwhile, Motor Vehicles Tax (MTV) was 25 percent, tax fees and penalties 36 percent, and Real Estate Tax 18 percent. while the Eurasia tunnel pass increased by 53 percent.
 
It should be emphasized that these increases were made especially by the state. In other words, while the state, on the one hand, maintains the controls supposedly to protect the public in the face of increasing prices and wants unnecessary price increases to be stopped, on the other hand, it makes those under its jurisdiction say "How do you tally eating this pickled cabbage pickle your diet".
 
Because, since the increase in the dollar has been shown as the reason for the hike in the last days of 2021, is there another reason that we do not know about the price increases that are currently being carried out? Or, while asking the citizens for a discount just because the dollar has started to decline, hasn't the dollar in question decreased in terms of the state? If there is something that the citizen does not know, shouldn't it be shared with the society?
 
Meanwhile, while the price hikes continue, on the other hand, “Natural gas and electricity support will continue". Shouldn't the content of the news given under the headline "Half of the bill is again from the state" to be explained by the relevant parties? In short, while the news that the state pays 50 to 75 percent of the electricity and natural gas bills is published, on the other hand, the fact that not only natural gas and electricity, but also all fuel prices are reflected in the pump, does not it hurt the citizens' backs?
 
As a result, we can say; Isn't it a sign that this year will be a more troublesome year than last year, while the producers and sellers are reacting to the hikes, while those who react are now directly implementing the hikes?

YEREL HABERLER

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