Lira crisis forces Turkey to hike gas, power prices 14pc

Turkey raised natural gas prices yesterday by as much as 14 percent, two sources said, while the energy regulator announced a similar increase in electricity costs as a deepening currency crisis stokes inflation.

The lira has fallen 42 percent against the dollar this year, hit by concerns about President Tayyip Erdogan’s grip on monetary policy and a worsening rift with the United States over a detained American Christian pastor.

The sell-off has increased the cost of food and petrol and raised fears about the impact on the country’s wider economy and banks. Economists are particularly worried about the central bank’s inability to rein in inflation, which hit a 14-year high of nearly 16 percent in July.

State pipeline operator Botas raised natural gas prices by 14 percent for industrial use and 9 percent for residential use effective from Saturday, two sources told Reuters. Officials for Botas were not immediately available to comment.