Turkey may hike April industry, power plant gas prices more than 20% -sources

by

ANKARA – Turkey is likely to raise gas prices for industrial facilities and power plants by more than 20% in April to help ease the burden on state gas company BOTAS and the government, two sector sources and two officials said.

“To be realistic, a price hike is inevitable now. It looks like it will be over 20%, maybe more than 30%,” a sector source said, citing BOTAS’s strained financial situation and high government subsidies due to higher energy prices.

The sources said Turkish natural gas prices for industrial facilities and power plants are one fifth of the levels in Europe in dollar terms.

Turkish households’ natural gas prices are one twentieth of the level in Europe, they said.

Two officials have said prices for households will be kept steady but a price hike for gas sold to industrial facilities and power plants is under discussion.

“The main idea is to keep household usage prices steady. This issue is being looked into by the energy ministry, BOTAS, the treasury and presidency. A decision will be made at the last moment,” one of the officials said.

BOTAS declined to comment.

Turkish energy importer BOTAS’s purchases of foreign currencies from the central bank have hit record highs in recent months due to soaring energy prices.

Turkey imports almost all of its energy needs, leaving it vulnerable to big price swings. Its energy costs started rising in September and surged 212% year on year in the first two months of 2022 to $16.8 billion, government data showed.

Reuters

You may also like

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: