Turkey raises natural gas prices, marking 150% increase in 16 months

Turkey’s state energy company BOTAŞ has increased wholesale natural gas prices, with residential consumers facing an average hike of 24.6% and industrial users 7.86%. The new rates, published on the company’s website, took effect on Jul 2, 2025.

The increase adds to the growing cost burden on households and businesses, despite government efforts to curb inflation through tight monetary policy.

Former Central Bank chief economist Prof. Dr. Hakan Kara noted that natural gas prices have risen approximately 149% since March 2024, when the Central Bank raised its policy interest rate to 50% as part of its anti-inflation strategy.

"Since March 2024, when interest rates were raised to 50% to combat inflation, natural gas prices have gone up by 149%," he said wrote on social media

Domestic hikes defy global trends

Political economist İnan Kara pointed out that from January 2023 to May 2025, global natural gas prices dropped by 32%, while in Turkey they increased by 74%. He added, “With the July hike, the total increase has reached 117%.”

The figures highlighted by Kara underscore the impact of domestic economic policies amid ongoing inflation, particularly in the energy sector.

Since Treasury and Finance Minister Mehmet Şimşek’s appointment in June 2023, Turkey has pursued a strict monetary policy with a series of interest rate hikes. The policy rate peaked at 50% in March 2024 and currently stands at 46%.

However, the rise in energy and essential goods prices has continued unabated, placing increasing pressure on household purchasing power. (HA/VK)