Page 26 - TURKRptSep22

4.2 Inflation
ING Bank (Amsterdam/INGA) has written down a €277mn loss in Q2 for its Turkish unit due to applying hyperinflationary accounting standards.
Citigroup (New York/C) and Vodafone (London/VOD) are also to apply hyperinflationary accounting at their Turkey unit.
Botas hiked its gas price for power plants by 10% to Turkish lira (TRY) 13.75 ($0.77) per cubic metre (m3), with the rise taking effect as of August 1, according to a statement from the company.
The price charged to households was left unchanged at TRY 3.26. The prices for Level 1 consumption (less than 0.3mn m3 per year) and Level 2 consumption (higher than 0.3mn per year) in industry also remained unchanged, at TRY 4.69 and TRY 10.42, respectively.
As a result of the changes, the gas price has risen by 484% y/y for industry, 567% y/y for power plants and 119% y/y for households (see chart below).
Average gas hub prices in Europe rose by 635% to $1.55/m3 in July from $0.21 in December 2020, while the Brent oil price in July was up 122% across the same period to stand at $108 per barrel, Botas noted.
Turkish households pay the cheapest price for gas in Europe. Bulgarian households, who pay the second cheapest price, pay TRY 26, according to
26 TURKEY Country Report September 2022 www.intellinews.com