Middle East in turmoil, natural gas bills to rise! Date set for price hikes

Recent escalating conflicts in the Middle East have caused serious fluctuations in energy markets, particularly in oil and natural gas. Following the attacks by the US and Israel on Iran in particular, upward movements in energy prices have accelerated. Experts point out that these developments make natural gas price hikes for households and industry in Turkey inevitable.

PRICES AT TTF INCREASED BY 50 PERCENT IN A SHORT TIME

According to expert assessments, these price increases could be reflected in consumers' natural gas bills in April or June. At the Dutch-based TTF, Europe's largest virtual natural gas trading hub, the price of April natural gas futures reached 48.5 Euros, an increase of nearly 50 percent in a short time, from 31.95 Euros last month.

"THE INCREASE WILL BE REFLECTED IN THE BILL"

According to the report in Sözcü, Dr. Mühdan Sağlam, who conducts studies in the field of Energy and Climate Studies, stated that a significant portion of Turkey's natural gas imports are made from the spot market, and that 20 percent of total imports last year were realized in this way. Dr. Sağlam emphasized that TTF prices are also a determinant in some long-term contracts, and that TTF is taken as a reference in main natural gas supply lines such as TurkStream and TANAP. Sağlam said, "The increase in TTF will be reflected both in the purchases we make now and in the natural gas bills we will pay in the future."

APRIL OR JUNE PROBABILITY FOR PRICE HIKES

Answering the question of whether a price hike is expected for natural gas, Dr. Sağlam assessed, "If the market remains in this state, a price hike is inevitable. We may see a price increase in April, or if BOTAŞ anticipates that the current crisis will be temporary, it may leave the tariff increase to June." Sağlam also stated that even if the crisis in the region is resolved quickly, it will take at least 3 weeks for the markets to return to normal.

Similar fluctuations are being experienced in oil markets worldwide. In this period when fuel prices are rising, the question of whether Turkey's strategic stock, corresponding to 94 days of imported oil, will be released to the market has come to the agenda according to International Energy Agency data. Dr. Mühdan Sağlam shared the comment, "There is no shortage in the oil Turkey receives, and prices have not reached the levels seen in the 2008 crisis. There is no major problem with the main suppliers. Therefore, there is no need to activate the national oil stock for now."

News Source: 12punto