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    Turkish PM says natural gas prices to be increased on June 1

    Hurriyet English
    31.05.2008 - 11:29 | Son Güncelleme:

    Turkish Prime Minister Tayyip Erdogan said Saturday the government plans to increase the natural gas prices on June 1. He did not elaborate the details. The industrial natural gas prices will increase by 8.3 percent, while the percentage of the increase in residential prices will be 7.4, Turkey's CNNTurk later reported. (UPDATED)

    High energy and food prices are the main drivers of Turkey's high inflation, which is expected to close double-digit figures in 2008 despite the target of 4 percent.  

    "We postponed such a hike for a very long time. But now we have to make a hike in the price of energy", Erdogan also said.

    The industrial natural gas prices will increase by 8.3 percent, while the percentage of the increase in residential prices will be 7.4, Turkey's CNNTurk later reported. 

    Foreign investors are trying to understand what's going on in Turkey, regarding the closure case against the ruling AKP, Erdogan said in a televised speech at the 63rd General Assembly of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) in Ankara on Saturday.

    "We are working to increase capital inflow in Turkey, and the international capital closely monitors developments in Turkey and tries to understand what is going on," Erdogan was quoted by the Anatolian Agency as saying. 

    "If the AKP loses Turkey will lose," he added.

    The income per capita in Turkey would reach $10,000 in 2008 and the government was making efforts to increase this amount to $15,000, Erdogan also said.

    "We are now working to make Turkey's gross domestic product (GDP) reach one trillion dollars," he added.

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