A Turkish minister's recently claim, "As of July, the economy will ramp up so much that you will be surprised" was refuted by the price hikes last night.
While the political power claims that the economy will ramp up, the hikes in electricity and natural gas, the price of which affects all cost items, overtaking the inflation of TUIK, pierced the citizens' budget!
12 PERCENT HIKE FOR NATURAL GAS
The tariff table for July was published on the website of Oil Transportation by Pipelines (BOTAŞ). Accordingly, the sales price applied by BOTAŞ to gas distribution companies for residential consumers increased by 12 percent to 1,488 liras for 1,000 cubic meters of natural gas compared to the tariff in effect in June, while this amount increased by 20 percent to 1,783 liras and 354 cents for industrial subscribers. The price of 1,000 cubic meters of natural gas used by power generation plants increased by 20.2 percent to 2,060 liras.
ELECTRICITY HIKED BY 122 PERCENT IN 5 YEARS
The Energy Market Regulatory Authority (EPDK), which determines electricity prices every three months, has announced the national tariff electricity unit prices that will be effective from 1 July. According to the statement made by EPDK, electricity tariffs were increased by 15 percent for all subscriber groups. With this increase, which will be valid for the third quarter of this year, the electricity tariff, which was increased by 6 percent in January, has increased by 21.90 percent in 2021 so far. In the last 5 years since 2016, the electricity tariff has increased by 19% in workplaces and 122 percent in residences.
INFLATION FORECAST DECREASES AS THE COST OF LIVING RISES!
According to TUIK data, inflation was 0.89 percent on a monthly basis and 16.59 percent on an annual basis in May. In the second inflation report of the Central Bank for 2021 in April, the year-end inflation forecast was revised from 9.4 percent to 12.2 percent. Workers' and civil servants' unions, on the other hand, state that the inflation in the streets is well above the inflation of TUIK and is at least 30-40 percent.