Ömer Karadeniz, Chairman of the Board of the Plastics Industrialists Federation (PLASFED), stated that Brent crude oil prices testing $119 are putting serious pressure on production costs and that this situation is not sustainable for industrialists. PLASFED Chairman Karadeniz, the umbrella organization, made the following statements regarding the issue:
“Brent crude oil prices testing the $119 level is creating significant pressure on production costs. This picture is not sustainable for the industrialist. The rise in oil directly affects not only energy costs but the entire production chain.
The continuous rise in Brent crude oil is essentially a cost shock for the industrialist. Many sectors such as plastics, chemicals, packaging, automotive, and white goods produce using raw materials derived from oil. Therefore, when the oil price rises, not only fuel but also the basic inputs of production become expensive at the same rate.
Today, a significant portion of the countries we compete with in global markets can access energy more cheaply. In Turkey, the increase in oil and energy costs is directly reflected to the producer. This situation makes it increasingly difficult for industrialists who export to maintain prices in international markets.
High oil prices not only increase the cost of today but also make tomorrow's production decisions uncertain. If global energy prices remain at these levels, profitability in many sectors will erode significantly. For the industrialist to survive, structural steps to balance energy costs must be taken quickly.
Turkey is a country that grows through a production economy. However, as long as dependence on raw materials and energy continues, every wave in oil prices will continue to shake our industry. For this reason, increasing petrochemical investments is a strategic necessity for Turkey to protect its production power.”
This content has been translated using artificial intelligence technology.