Turkey raises gas prices for industry by 7.9%

Natural gas prices in Turkey will increase from July 2, 2025: by 24.6% for households and by 7.86% for industrial consumers. This was announced by the state-owned company BOTAŞ on its official website.

The changes in tariffs are explained by the need to achieve budgetary goals.

As stated in the company’s statement, the adjustment applies to wholesale natural gas prices, which directly affects the final prices for different categories of consumers. Economist and former chief economist of the Central Bank of Turkey Hakan Kara emphasized that since March 2024, when the interest rate was raised to 50%, gas prices have already risen by almost 150%. In his opinion, such growth contradicts the declared policy of curbing inflation.

The price increase is causing concern amid already high energy costs, which are putting pressure on both businesses and consumers. This decision is expected to have an impact on the overall inflation rate in the country and increase financial pressure on households during the summer.

It should be recalled that Turkey last adjusted energy prices in April this year. In particular, from April 5, electricity tariffs for industrial consumers increased by 10%, and natural gas prices for enterprises increased by an average of 20%. This decision increased the costs of energy-intensive industries, in particular metallurgy, which is heavily dependent on electricity due to the dominance of electric arc furnaces.

As GMK Center reported  earlier, in 2024, Turkish steelmakers increased steel production by 9.4% compared to 2023, to 36.89 million tons. Pig iron production in the country grew by 17.2% y/y last year, to 10.19 million tons. Average monthly steel production amounted to 3.07 million tons compared to 2.81 million tons in 2023, and pig iron production amounted to 848,800 tons and 724,200 tons, respectively.