Will there be a hike in natural gas prices? Statement from Minister Bayraktar

Minister of Energy and Natural Resources, Alparslan Bayraktar, made statements regarding upcoming regulations on natural gas and electricity bills. He emphasized that they aimed to avoid price hikes as much as possible, considering the impact of energy costs on inflation.

Bayraktar also mentioned that actual electricity costs would be passed on to high consumption groups, while subsidies would be directed to more appropriate groups. He added that special cases, such as multiple families sharing one electricity meter in rural areas, would be taken into account, with these regulations set to take effect in 2025.

Bayraktar also shared details about Turkey’s energy production efforts. Following the natural gas discovery in the Black Sea, the country is currently producing 6 million cubic meters of gas per day, with plans to increase this to 10 million cubic meters by early 2025. This production capacity would meet the natural gas needs of approximately 4 million homes. He also noted that a new floating production platform in Filyos has become operational, which will be used to process gas from offshore sources.

Highlighting the importance of reducing Turkey’s dependence on energy imports due to the high cost, Bayraktar pointed out that the country had spent $70 billion on energy in 2023. He noted that local energy production would reduce this energy import bill by 15%. The minister also stated that the government covered 60% of electricity and natural gas bills and planned to continue this support. However, a new consumption-based subsidy model is being planned, where higher consumers will bear more of the costs.

Finally, Bayraktar said that they were working to avoid price increases in energy as part of the fight against inflation and were taking steps to minimize the impact of energy prices on inflation.