A signal of a 'price hike' on bills? A critical statement from Minister Bayraktar: 'I hope that...'

Speaking at the Energy Markets Regulation and Competition Summit held in Antalya, Minister of Energy and Natural Resources Alparslan Bayraktar drew attention to the effects of regional conflicts on energy markets.

Emphasizing that there is a serious contraction in global oil supply due to the war in the Middle East, Minister Bayraktar said, "Currently, there is a daily oil supply problem of 11 million barrels in the world, and this is not a figure to be underestimated." Stating that the volatility in global oil markets stems from a supply crisis, Bayraktar noted that different statements and reactions are seen in the markets every day.

Bayraktar explained that the impact of the war is felt in different dimensions in different countries; he noted that Asia, in particular, is more affected due to its dependence on oil coming through the Strait of Hormuz.

Regarding Turkey, he stated that there is currently no foreseen risk concerning supply security for oil, fuel, and natural gas. He expressed that Turkey has diversified its natural gas supply portfolio, and as a result, there are no problems with natural gas.

'I HOPE THAT...'

Minister Bayraktar conveyed that the implemented sliding-scale (eşel mobil) system will cost the Treasury 600 billion liras by the end of the year, and that if the war continues, a similar burden could arise in electricity and natural gas. "We have not yet reflected the impact of the war on prices. In the last three years, the cost of subsidies provided for natural gas and electricity has reached approximately 1.85 trillion liras in current figures. We anticipate that the subsidies will continue this year as well. I hope that we will not have to make a new price adjustment this year either," he said.

Bayraktar also reported that energy exploration activities are ongoing in Libya and various other countries, and that these efforts will continue in the coming period. He added that new tenders for Renewable Energy Resource Areas (YEKA) are targeted to be completed by October.

News Source: 12punto