Treasury depleted: A wave of price hikes expected after the holiday!

While the decision to set the Ramadan Feast holiday at 9 days was evaluated as a move by the government to ease pressure on the economy and calm the markets, economic difficulties await citizens upon their return from the holiday. The direct reflection of the rapid rise in exchange rates on costs and the fact that the budget deficit has reached record levels indicate that the economic management will resort to further borrowing and price hikes to close the deficit.

TREASURY INCREASES BORROWING

The budget deficit, which approached the 500 billion TL threshold in the first two months of the year, has increased the Treasury's borrowing requirement. The borrowing program for the next three months has been shaped as follows:

329.5 billion TL in April,

174.9 billion TL in May,

286.8 billion TL in new borrowing will be made in June.

In contrast, the amount of debt the Treasury must repay in the same period is 692.6 billion TL. However, the Treasury will be forced to resort to additional borrowing of over 100 billion TL to roll over its debts.

WAVE OF PRICE HIKES IS AT THE DOOR

Due to rising borrowing costs and the increase in exchange rates, the economic management is expected to turn to new sources of revenue. Gradual price hikes are expected for goods and services managed and regulated by the public sector. Here are the price hike rates item by item:

ELECTRICITY

It is stated that the Energy Market Regulatory Authority (EPDK) has added the tariff increase requests of private production and distribution companies to its agenda and that the electricity consumption fee will be increased by at least 25 percent, effective from April 1.

NATURAL GAS

In addition to the EPDK, the public institution Petroleum Pipeline Corporation (BOTAŞ), which undertakes natural gas distribution and sales, is preparing to increase the natural gas consumption fee tariff, which it has not increased for a long time at the expense of billions of liras in ''duty losses,'' by around 25-30 percent.

FUEL

In addition to reflecting exchange rate increases in electricity and natural gas tariffs, consecutive price hikes in fuel prices are also on the agenda. The electricity, natural gas, and fuel price hikes expected to be announced after the holiday will trigger a chain reaction of price increases in public transportation, shipping, and logistics, as well as in the prices of other products, goods, and services, ranging from everything imaginable to food prices, including fruits and vegetables.