Turkey entered September with news of exorbitant price hikes in natural gas and electricity. Especially the 50,8 percent hike in the natural gas used in the industry and the 50 percent hike in the electricity increased the difficulties in the production sector, which is currently in a difficult situation. While the industrialists, who made a statement to the Milli Gazete, stated that this situation would put a great burden on the producer, it is expected that the increasing energy costs will also reflect on the product, namely inflation.
PRICES WILL BE REFLECTED TO CITIZENS
Indicating that the biggest cost of the industrialist is electricity and natural gas, A New World Industrialists and Businessmen’s Association (YENİAD) Chairman Selman Esmerer made evaluations for our newspaper. The increase in energy input costs has made production in Turkey increasingly difficult. Of course, these unfavorable conditions reduce the chance of the producers in our country to compete with the outside world. The increase in energy costs also hinders exports. With the recent hikes, the prices of the products produced by that sector will be automatically increased. This will cause inflation to rise.
BURDEN ON THE INDUSTRIAL'S BACK
Anatolian Lions Businessmen Association (ASKON) Chairman Orhan Aydın stated that it is a fact that the latest price hikes will be a burden on the industrialists. We are facing an international energy crisis. Naturally, energy usage costs are increasing in Turkey as well. However, as ASKON, we encourage our members to establish renewable energy systems in their facilities and production centers. However, it is also true that the recent hikes will of course be a burden on the industrialists. Recent hikes will also affect inflation as they increase the input costs of the industrialists.
ENERGY BECOME A SERIOUS COST ITEM
Industrialist and businessman Muzaffer Serenli stated that the cost of energy in production has increased. Our energy costs increased from 4,5 percent to 9-10 percent in a year, and became a serious cost item. We want to produce. We want our sector and industry to grow. We want to generate employment. Turkey's economic growth will be with production.
IT IS DIFFICULT FOR THE MANUFACTURER TO STAND IN THESE CONDITIONS
Ömer Yüksel Özek, General Manager and Concessionaire of Milli Gazete, evaluated the effects of energy hikes on the printing industry. Until a few years ago, energy costs were not so important to us. However, the energy we use in production is now among our biggest expense items. One of Turkey's biggest problems is energy. In the past months, we were paying electricity bills over 2 million Turkish Liras (TL). Now, with the 50 percent increase, we will have an electricity expense of over 3 million TL. Today it has become very difficult for a manufacturer to stand. We have come to such a point that they almost want to finish production in Turkey.
Turkey entered September with natural gas and electricity hikes. In particular, a 50,8 percent increase in natural gas used per second and a 50 percent increase in electricity will adversely affect the production sector. The energy crisis in the world was cited as the reason for the hike in the statements made by the Energy Market Regulatory Authority (EMRA) and Pipelines and Petrol Transport Inc. (BOTAŞ). However, since 2020, the exorbitant price increases for electricity and natural gas have almost tripled the energy cost of industrialists and tradesmen. While the industrialists, who made a statement to the Milli Gazete, evaluate the situation as a major blow to production, it is expected that the rising energy costs will reflect on the product, namely inflation.
“ENERGY COSTS PUT INDUSTRIALIST IN A HARD SITUATION”
Indicating that the biggest cost of the industrialists is electricity and natural gas, YENİAD Chairman Selman Esmerer made an assessment to our newspaper, “The consecutive price hikes in natural gas and electricity in recent years have really put the industrialists in a difficult situation. There is a great recession in the economy right now and the increase in energy input costs has made production in Turkey increasingly difficult. Of course, these unfavorable conditions reduce the chance of the producers in our country to compete with the outside world. The increase in energy costs also hinders exports. On the other hand, the fact that the purchasing power of the citizens has decreased in the domestic market puts the producer in a difficult situation,” he said.
“HIKES WILL BE REFLECTED IN THE PRODUCTS BOUGHT BY THE CITIZENS”
Selman Esmerer, who stated that the hikes will reflect on the citizens, “There are many sectors that produce based on electricity and natural gas. With the recent hikes, the prices of the products produced by that sector will be automatically increased. This will cause inflation to rise. In other words, the natural gas and electricity hikes made to the industrialists are reflected on the citizens. Unfortunately, there is a vicious circle in Turkey due to economic problems. The invoice of each hike indirectly actually reflects on the citizens. We can say that the decrease in the purchasing power of the citizens is the source of all the problems in our country. Because the economic recession affects every sector,” he added.
“ENERGY BECOME A SERIOUS COST ITEM”
Industrialist and businessman Muzaffer Serenli stated that the cost of energy in production has increased and said, “Our energy costs have increased from 4,5 percent to 9-10 percent in a year. It has become a serious cost item. In addition, it always causes an indirect cost increase. For example, the producer's steel cost has increased by another $40 per ton. As such, there will be a price increase in all our inputs. We want to produce. We want our sector and industry to grow. We want to generate employment. We want to make a sustainable and innovative production. We want to sell Turkish goods to the world. It is very difficult for us to grow without support. Turkey's economic growth will be through production.”