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Turkey has announced a 50% increase in the price of natural gas for industrial users. What the situation looks like for households


Also, the price of natural gas for electricity production will increase by 44%, from April 1.

One of the largest gas importers in Europe, Turkey depends on pipeline gas from Russia, Azerbaijan, Iran, as well as liquefied natural gas (LNG) suppliers.

Turkey’s energy costs began to rise in September and in the first two months of 2022 saw an annual advance of 212% to $ 16.8 billion, according to Ankara authorities, according to Agerpres.

Botas’ foreign exchange purchases from the Central Bank of Turkey have reached record levels in recent months due to rising energy prices.

Economists have calculated that raising the price of natural gas for households will lead to an increase in inflation by 55 basis points. The secondary impact of the increase in the price of natural gas for industrial users will lead to an increase in inflation by more than 55 basis points.

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In February, consumer price inflation in Turkey stood at 54.4%, mainly after the depreciation of the Turkish lira by 44% against the dollar in 2021. The depreciation intensified after a series of cuts in interest rates by the Central Bank of Turkey .

Following a recent rise in commodity prices due to Russia’s invasion of Ukraine, inflation in Turkey is expected to reach 61.5% in March, according to a Reuters poll. By the end of the year, it would drop to 52.2%.

Turkey consumes about 50 billion cubic meters of natural gas a year and is well placed to become a hub for gas transportation in the region, analysts say.

Romanian Energy Minister Virgil Popescu met with Turkish President Recep Tayyip Erdogan in Istanbul on Thursday.

“Together with Deputy Prime Minister Sorin Grindeanu, I had a working meeting today (Thursday, no.) With the President of the Republic of Turkey, Recep Tayyip Erdogan. We focused on strengthening cooperation in the field of energy, within the Strategic Partnership between Romania and Turkey. In the current geopolitical and security context, partnership is a priority, and energy resources must not be used as blackmail weapons. I told him that Romania supports the development of the Southern Gas Corridor and we encourage the partnership between the two states in order to diversify the supply routes “, the Minister of Energy wrote on Facebook.

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Virgil Popescu participated, in Istanbul, in the 27th Meeting of the Joint Intergovernmental Commission for Romania-Turkey Economic Cooperation, together with the Deputy Prime Minister – Minister Sorin Grindeanu.

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