Turkey likely to hike natural gas and power prices up to 15% next month
Turkish natural gas and power prices are expected to rise by up to 15% next month, four industry sources told Reuters on Thursday.
More costly gas and electricity could keep upward pressure on Turkey's living costs and inflation, which is near a 2.5-year high above 19%. It could also complicate the central bank's plans to ease monetary policy.
The sources, who asked to remain anonymous, told Reuters they expected a 15% rise in gas and an 8-15% rise in electricity prices beginning Oct. 1.
Analysts expect prices to remain elevated until 2022 or even 2023, Reuters said.
"Due to rising fuel costs, the industry expects a hike in electricity and gas prices," Reuters cited an energy industry source as saying.
Turkey is almost fully dependent on imported natural gas from Russia, Iran and Azerbaijan until at least 2025 when it expects its first gas field to reach volume production.
Two of the sources told Reuters that Turkey would likely follow up next month's price hikes with further hikes heading into winter.
"No government wants to tell its citizens that there'll be serial price hikes. But simple mathematics dictates follow up hikes in gas and electricity prices in the next few months," one of the sources told Reuters.