RİSİNG ENERGY COSTS CHALLENGE TRADERS AND INDUSTRİALİSTS

ETO President Metin Güler addressed the substantial price hikes in natural gas and electricity for industrial use, as well as electricity for commercial enterprises, which took effect on September 1, 2022. Güler remarked that while rising energy costs are a global issue, Turkey feels the impact more acutely due to its dependency on foreign energy sources and the high exchange rate.

Rising Energy Prices Drive Up Costs and Trigger Inflation

Güler noted that the 50.8% increase in natural gas and 50% increase in electricity for industrial production, along with a 30% increase in commercial electricity, would put both industrialists and traders in a difficult position. He emphasized that these hikes make it increasingly challenging for traders and industrialists to remain viable and competitive globally. Güler explained that rising energy costs push up production expenses and overall operating costs, reducing incentives for production, employment, and investment. He warned that each energy price hike fuels inflation and stressed the need to halt increases in natural gas and electricity prices to keep industry running and help businesses survive.

More Support Needed for Traders and Industrialists

Despite tough economic times, Güler acknowledged that traders are continuing to work and industrialists are striving to produce. However, he pointed out that the exorbitant increases in natural gas and electricity make it impossible for traders and industrialists to plan for the future. Güler highlighted that traders need more support to sell and industrialists to produce, as steep energy hikes disrupt financial balance and business planning.

Energy Price Hikes Negatively Impact the Economy

Güler underlined that each business contributes to production, employment, and added value, and that if businesses cannot stay afloat, added value, production, and employment will decrease. He stressed that decisions on energy price increases should consider all potential negative impacts on the economy.