Page 27 - Turkey Outlook 2025

$8bn.
7.0 Energy & Power
Subsidies
In 2023, energy prices in Turkey kept breaking records due to lira depreciation and tax hikes, despite declining prices on global markets.
In 2024, prices were stabilised. However, the regime kept subsidising local consumption.
“We have paid 65 lira of each 100 lira worth of electricity bills of our citizens and 60 lira of each natural gas bill,” Erdogan said on December 23.
According to Baris Erdeniz, head of the country's electricity grid operators association (ELDER), the lowest-level household consumers in Turkey, who use up to 5 kWh of electricity daily, pay a monthly bill of TRY496 ($14), though the cost of the electricity in question stands at TRY3,000.
The government subsidies 60% of electricity bills of households at low-consumption levels, 40% of electricity bills of households at high-consumption levels and 63% of natural gas bills of all households, according to Energy Minister Alparslan Bayraktar.
The regime is not planning to lower its subsidies in the near future.
Russia’s re-exporter
Turkey has been re-exporting Russian natural gas, oil, wheat and barley via schemes that dodge the West’s Ukraine War sanctions on Moscow.
8.0 Markets outlook
8.1 FX Under control
The non-capital controls and the government’s full control on the lira market remain in effect. A return to a floating rate regime is not visible in the near future.
Turkey’s balance of payments always produces a deficit and the
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