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 picture is not sustainable for industrialists. PLASFED Chairman Karadeniz, as the umbrella organization, made the following statements regarding the issue:
“The fact that Brent crude oil prices are testing the $119 level is creating serious pressure on production costs. This picture is not sustainable for industrialists. The rise in oil directly affects not only energy costs but the entire production chain.
The continuous rise of Brent crude oil acts as a cost shock for industrialists. 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 more 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, however, the increase in oil and energy costs is directly reflected on the producer. This situation makes it increasingly difficult for exporting industrialists to maintain competitive pricing in international markets.
High oil prices do not only increase today's costs, but they also make tomorrow's production decisions uncertain. If global energy prices remain at these levels, profitability in many sectors will melt significantly. To ensure the survival of industrialists, structural steps to balance energy costs must be taken rapidly.
Turkey is a country that grows with its production economy. However, as long as dependence on foreign sources for 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.