Page 27 - TURKRptSep22

Botas.
Natural gas is the cheapest source of heating in Turkey as the price of producing 1,000 kcal heat from electricity is 215% higher compared to gas, Botas said.
As of August 8, Brent was up 33% y/y to $96 while Dutch TTF Natural Gas Futures were higher by 355% y/y. The USD/TRY pair was up 108% y/y.
In July, Botas left all its gas prices unchanged. In June, it hiked the gas price for industry by 10% (601% y/y), for power plants by 16% (630% y/y) and for households by 30% (146% y/y).
In 2021, power plants consumed 21bn m3 gas, a 35% share of Turkey’s overall consumption of 60bn m3 and up 53% y/y due to drought that hit hydropower production.
Also last year, households consumed 17bn m3 of gas, equivalent to a 28% share and up 7% y/y. Industry consumed 15bn m3, representing a 26% share and up 20% y/y due to pandemic effects in 2020.
The diesel fuel (Eco Force) price at Opet stations on the European side of Istanbul climbed to Turkish lira (TRY) 26.85 ($1.48) per litre on August 29, up 270% y/y, from TRY 22.36 on August 9.
In the same period, the gasoline price was relatively stable. It stood at TRY 20.13 ($1.11) on August 29, up 160% y/y, compared to TRY 20.04 on August 9.
The record diesel price of TRY 29.94 was registered between June 16 and June 27. The record gasoline price of TRY 28.46 was seen on June 13. Diesel's annual price increase topped 316% and gasoline's exceeded 269% at the price peaks.
Gasoline prices in Turkey are automatically updated based on a formula. The variables are the Brent oil price, crack margins (CIF Med), the USD/TRY rate and the special consumption tax (SCT).
As of August 25, Brent was up 43% y/y to $101 (down from the $120s seen in June) while the USD/TRY pair was up 116% y/y to 18.17.
The diesel crack margin fell to $38 per barrel in July from $54 in June but remained substantially higher than the $12 registered in February. The gasoline margin, meanwhile, fell to $26 in July from $44 in June but remained distinctly higher than the $13 seen in March.
27 TURKEY Country Report September 2022 www.intellinews.com