ANKARA, Sept. 22 (Xinhua) -- Surging fuel prices are increasingly affecting household budgets, transportation choices and the prices of goods and services in Türkiye, after diesel exceeded 100 Turkish liras (2.05 U.S. dollars) per liter for the first time recently.
The latest increases came amid elevated global energy prices and disruptions to oil supplies. Brent crude rose above 100 U.S. dollars per barrel earlier this month as concerns over supplies through the Strait of Hormuz intensified.
In a country where nearly half of the workforce earns the minimum wage of 28,075.50 liras, the hikes are significant. The impact is particularly significant for Türkiye, a major importer of both oil and natural gas.
Yusuf Koseoglu, a retired architect living in Ankara, told Xinhua that the increases were already affecting households and the wider economy.
"The increases are already affecting us, and we don't know what will happen next," Koseoglu said. "At the moment, it is impossible to live on a pension in Türkiye. I live on my savings."
"There is a direct impact on inflation. A one-lira increase in the price of oil affects everything -- food, drink, transportation. We depend on it for everything," he said.
For some households, higher fuel costs have prompted changes in daily travel habits. The cost of filling a tank has made regular private-car use increasingly difficult, prompting some to limit journeys, use company shuttles or turn to public transportation.
Hilal Onat, a teacher, said that although she owned a car, she had stopped using it to commute whenever possible.
"I drive a car, but now I use the company shuttle whenever possible when going to work because fuel prices have risen so much," she told Xinhua.
Istanbul-based economist Mustafa Sonmez warned that the impact of higher fuel prices extended across the economy.
"People are wondering how they will afford heating fuel for winter and how to cope with higher transportation costs. Fuel prices affect the whole of the economy and will lead to price increases in most goods and services," Sonmez told Xinhua, warning that this would deepen Türkiye's cost-of-living squeeze.
Türkiye's annual consumer price inflation moderated to 31.51 percent in August from 31.75 percent in July, while monthly inflation was 1.84 percent. The recent energy-price increases have added another external pressure as authorities pursue a disinflation process.
Treasury and Finance Minister Mehmet Simsek said last week that Türkiye's disinflation process had been successful but was moving more slowly than desired, attributing the slowdown to domestic and particularly external factors.
"If there had been no war this year, inflation would be at least 7 percentage points lower as of today," Simsek said.
Energy and Natural Resources Minister Alparslan Bayraktar described the international energy environment as a "perfect storm," citing developments involving the Strait of Hormuz, the Russia-Ukraine conflict and other factors. ■
