Turkey increased gas prices for average consumers by 33.1%

From August 2024, the Turkish Oil Pipeline Corporation (BOTAŞ) is increasing the wholesale prices of natural gas for enterprises whose annual consumption does not exceed 300,000 cubic meters (except electricity producers) by 33.1% compared to the previous price levels. This is stated in the press release of the company.

The tariff for the population increases by 38%. However, the wholesale price of natural gas, which is used for electricity production, and enterprises that use more than 300,000 cubic meters of gas per year has not changed.

The last time BOTAŞ raised the prices of natural gas for large industry was in October 2023 – by 20%. At that time, the cost of gas also increased for electricity producers, small and medium-sized businesses. At the same time, the wholesale price of natural gas for domestic use remained unchanged.

Before that, Turkey raised natural gas prices in September 2022. Then tariffs increased by 50% against the background of increased demand due to the military aggression of Russia–- the largest supplier of gas to the territory of Europe. This trend continued until the end of the year, but already in February 2023, BOTAŞ announced a 13.3-17.2% decrease in natural gas prices for large industrial enterprises. This was followed by price corrections in March and April, by 20.95-26.12% and 20.01%, respectively. In the future, tariffs remained stable.

As reported by GMK Center, in 2023, Turkey reduced steel production by 4% compared to 2022 – to 33.7 million tons, and in 2022 – by 12.9% y/y, to 35.1 million v. The decline in steel production in the country in 2022-2023 is associated with macroeconomic instability, which has led to high uncertainty in the domestic market.

There are 29 steel enterprises located in Turkey, in particular, 3 – blast furnace type, and 26 – electric arc type. Their annual capacity for steel smelting is estimated at about 60 million tons. That is, in 2023, capacity utilization was at the level of 58.5%.