ANKARA: Turkey's state energy company BOTAS said on Tuesday the price of natural gas used for electricity production was hiked by 18.3%, a day after President Tayyip Erdogan announced tax cuts on electricity and cheaper price regulations to fight inflation.

There were no changes to price of natural gas used by industrial facilities and households.

Turkey has administered steep energy price hikes this year, as inflation soared to near 50% in January after a currency crisis last year. Prices have also surged globally, most recently due to Russia's invasion of Ukraine.

Turkey reduced the value-added tax (VAT) on electricity used in residences and agricultural irrigation to 8% from 18%, Erdogan announced on Monday, in a move to combat soaring inflation.

Separately, the top limit for using electricity at a cheaper rate was raised to 240 kWh per month for households, while a lower rate was introduced for industrial users that consume less than 900 kWh per month.

Two economists calculated that the tax cuts and the new price regulations in electricity prices would lower inflation by 0.2-0.3 percentage points in March.