RESPONSE FROM ETO PRESIDENT GÜLER TO NATURAL GAS PRICE INCREASE

ETO President Metin Güler expressed concern that the natural gas price increase, effective August 1, 2024, will impose a significant burden on traders and industrialists, stating that high energy prices will negatively affect the fight against inflation.

In his evaluation regarding the natural gas price increase, which will be applicable from August 1, 2024, ETO President Metin Güler recalled that as of July 1, 2024, there was a 30% increase in electricity prices for agricultural activities and a 38% increase for residential electricity. He emphasized that these price hikes would hinder the efforts to combat inflation. Specifically, he noted that as of August 1, 2024, there was a 38% increase in natural gas for residential use and a 33.1% increase for facilities consuming less than 300,000 m³ of natural gas. Güler highlighted that these increases will result in a substantial cost burden for both members and producers.

High Energy Prices Make It Harder for Traders and Small Businesses to Survive

Güler stated that the price hikes not only negatively affect inflation but also create additional costs for producers. He explained that consecutive price increases in electricity and natural gas would reflect as price hikes in the market. He warned that the significant energy price increases would hinder small and medium-sized enterprises (SMEs) from making cost calculations due to their low profit margins, complicating the ability of these businesses and traders to remain afloat.

Price Increases Affect the Purchasing Power of Citizens and Workers

The price hikes are also adversely impacting the purchasing power of citizens and employees, Güler added. He pointed out that amidst continuously rising prices, employers struggle to establish a healthy salary policy for their employees and to retain skilled human resources. Güler concluded that to maintain a strong commitment to combating inflation, it is essential to prevent high energy price hikes.