Government poured price hikes on the very first day of the new month, too.
For natural gas, the residential tariff had 12%, and the tariff of industrial subscriber group had 20% price hikes. Hydro also got its 15% increase. The hydro price hike became more than 100% since the year 2018. For natural gas, the hike reached up to 19% since the new year. It is expected that the price increases in hydro and natural gas would add to 1.1 points to the inflation.
Related to the price hikes that have become automatic, the citizens demanded the price hikes be withdrawn, meanwhile, talking to Evrensel, Prof. Veysel Ulusoy said “if no measures are taken, hyperinflation will not be too far away.”
WARNING FOR HYPER INFLATION
Since the start of the new year, in addition to the price increases, besides that they have been automatic , Prof. Ulusoy, commenting on “the intermediate hike” announced today would carry the inflation to higher rates than it completely already was, assessed it as “Basically, the price increase is not the fate of the people, it is nobody’s fate. Inspite of surplus of money in global markets, in addition to the shortage of foreign currency, confronted as a result of the meltdown in macroeconomic indicators, the likelihood that such excessive price hikes would perhaps turn into a hyperinflation, (inflation going above 40%) also increases.” Ulusoy responded to our question “The price hikes came right after the period of inflation for the waged and salaried. And the ‘debit items’ of the central budget ‘saved’ at least 1 billion lira. On the other hand, the insistence continues on the projects guaranteed by public funds, İstanbul Channel at the head. How should it be understood?” as:
“The state cannot have savings on residential income. The only aim of the state is to take the social prosperity of the people to higher levels. The practice of any state cannot be to take a share of people’s income through artificial statistics. Considering the fact that the inflation is fed by the disorders of macroeconomic values, it is apparent that it would bear an outcome of weakening of both social values and the state to get ‘income from taxation through inflation’ without creating income. During the economic structural process, in such financial bottleneck, it wouldn’t be wrong to assert that the crisis to be caused by such so called investment approach like Istanbul Channel, which provides artificial income (rant) but has no benefit for the people what so ever, would be more devastating than the one we have been living through.”
CONFEDERATION OF COMSUMER ORGANIZATIONS: THE PRICE HIKES ON HYDRO AND NATURAL GAS BE WITHDRAWN
The Confederation of Consumer Organizations (CCO), emphasizing that they disapprove of the excessive price hikes announced as 15% on hydro and average 18% on natural gas, renewed its demand “withdraw the price hikes.”
HYDRO PRICE HIKED AT 122% IN 3.5 YEARS
The statement made by CCO chairperson Fuat Engin said “As a result of the unjust price hike, the end users, the consumers will pay 91.56 TL per 100 Kwh hydro consumption, including the taxes and funds. With this last increase, the hydro prices have been increased 122% over the last 3.5 years.”
NATURAL GAS PRICE HIKED 7 TIMES IN THIS YEAR ALONE
According to the tariff announced by BOTAS, the statement, reminding that the price of natural gas has been increased the 7th time since January, had the following lines: “Starting with January of 2021, in 2021, up until the month of July, it had been increased 1% every month. According to this, during the period of Dec 31, 2020 – July 01, 2021, in other words, in 6 months, the price hike rate reflected on the lives of the consumers has been 18%. It would be unavoidable that the price hike of 20% on the industrial consumers would also be put on the backs of those consumers.”
THE BEGINNING OF THE STREAM OF PRICE HIKES FROM SOUP TO NUTS
In the statement, the following question was directed to the government administrators “What is the annual rate of increase in the salaries of workers, retirees, and those waged at the minimum wage?” and the answer was:
“Let us say that, including the compensation for inflation, it is approximately 30%.”
“The announcement of price increases on hydro and natural gas is the start of a stream of price increases from soup to nuts, following this, it is apparent that the increase will be spread to many basic goods and services directed towards the consumers.”
“Moreover, the chosen date of the announcement of excessive hikes, that would otherwise affect the inflation rate over the last 6 month period, has indicated how sneaky attempt it was to avoid it.”
THESE HIKES TURNED BOTH THE WINTER AND THE SUMMER OF CONSUMERS INTO HELL
In the statement emphasizing that the consumers, pressed under the heavy burden of the pandemic conditions, have become not able to recover with such hikes, it was further said that “These hikes have turned bot the winter and the summer of consumers into hell.”
Moreover, in the statement, it was reminded that the government has been tasked with taking the most appropriate precautions about those addressed in Article 172 of the Constitution and the Article 1 of Bill 6502 of the law about the consumer protection, and the “universal rights of consumers” and the “right to the protection of economic interests of consumers.”
“WE STRONGLY OPPOSE TO THESE HIKES PROVIDING FOR UNJUST GAINS”
The statement went on saying “We strongly oppose to these price hikes causing suffrages for consumers by providing for unjust financial gains,” and the called for “Do not force the patience of the consumers any further and withdraw the price hikes for the public good. We call on the governors of the country to behave justly. Withdraw the price hikes.” (EVRENSEL DAILY)
Hediye Levent
Yusuf Karadaş
Yücel Özdemir