Turkey raises gas price, electricity hike to be announced

ANKARA, Oct 1 (Reuters) - Turkey has raised the consumer price of natural gas by 9.8 percent from Monday in line with increasing global energy costs, state energy company Botas announced.

Prime Minister Tayyip Erdogan had said prices would be raised by between 10-15 percent in early October, and the increase is seen as an effort to shore up public finances as the government tries to shrink a widening budget deficit.

Turkey was Europe's fastest-growing economy last year with an 8.5 percent expansion, but growth has slowed sharply this year, to 2.9 percent in the second quarter, and tax revenues are falling short of budget targets.

Energy officials previously told Reuters that gas prices would be raised from the start of October and that electricity prices would in turn be raised. Officials said the energy market watchdog EPDK would announce an electricity retail price hike on Monday.

(Reporting by Orhan Coskun; Writing by Daren Butler; editing by Miral Fahmy)

((daren.butler@thomsonreuters.com)(+90-212-350 7122)(Reuters Messaging: daren.butler.thomsonreuters.com@reuters.net))

Keywords: TURKEY ENERGY/PRICES