Şimşek: Gov’t taking necessary measures amid energy price volatility

ANKARA

Finance Minister Mehmet Şimşek has highlighted the government’s active role in managing global energy price volatility, stressing that economic authorities are keeping a watchful eye on developments and taking the necessary steps.

“We are going through a period marked by high global uncertainties and sharp fluctuations in energy prices… As economic management, we are closely monitoring developments and taking the necessary measures,” Şimşek wrote on X on March 9.

He noted that past experiences show such shocks are not permanent, adding that pricing in forward oil markets suggests the current movement may be temporary.

Şimşek’s remarks come as energy costs remain a key concern for economies worldwide.

Oil prices eclipsed $115 per barrel on March 9 as the war in Iran intensified, threatening production and shipping in the Middle East.

The price for a barrel of Brent crude, the international standard, surged to $115.31, up 24 percent from its closing price of $92.69 on March 6.

Türkiye is a net importer of crude oil.

According to calculations by the Turkish Central Bank in a report published in July 2025, a 10 percent increase in crude oil prices ultimately results in a one‑percentage‑point rise in consumer inflation.

In February, consumer prices rose by 2.96 percent month-on-month, bringing the annual increase to 31.53 percent.

In its Inflation Report released in February, the bank assumed that crude oil prices would average $60.9 per barrel in 2026 and $56 per barrel in 2027.

In its July 2025 study, researchers at the Central Bank also calculated that every $10 increase in oil prices leads to a rise of around $2.6 billion in the current account deficit in the next 12 months.

They also stated that a $10 average price increase in crude oil will result in $5.1 billion and $2.2 billion increases in imports and exports of oil, respectively.