Iraqi turmoil brings big hike to Turkish fuel prices

ANKARA

Fuel distributors have introduced 10 and 12 kuruş hikes to gasoline and diesel oil prices in Turkey, after an excessive rise in crude prices due to tensions in Iraq.

The gasoline market price rose to 5.13 Turkish Liras from 5.03 in Ankara and İzmir and from 5.02 to 5.12 in Istanbul with the hikes, which took effect as of June 20.

Average diesel fuel prices also approached 4.50 liras in Istanbul after a 12 kuruş increase, whereas Turks will be buying diesel Ankara and İzmir for 4.53 and 4.45 liras on average respectively.

The retail sale prices of fuel products will differ from company to company and province to province based on the costs and competition conditions.

Increased risks to the disruption of supply from Iraq sent crude prices near $115 per barrel on June 20, close to a nine-month high, and headed for its second weekly gain.

Iraqi government forces battled Sunni militants for control of the country’s biggest refinery on June 19.

If the 300,000 barrels per day refinery stays closed, Baghdad will need to import more oil products to meet its own domestic consumption, further tightening oil markets.

Fields south of Baghdad, where most of Iraq’s 3.3 million barrels per day (bpd) of oil are produced, as well as exports, remain unaffected. But heavy fighting north of the capital and foreign oil firms beginning to pull staff out pose a risk to supplies from OPEC’s number two producer.