Energy watchdog asks for cut in gas prices

Energy watchdog asks for cut in gas prices

ISTANBUL -Hürriyet
Energy watchdog asks for cut in gas prices

The Turkish energy watchdog EPDK has warned fuel oil firms to reduce their prices that were determined to be higher than the ‘reference price.’

Turkey’s energy watchdog EPDK has asked all fuel oil companies to slash their prices in an official letter. The watchdog is expected to set a ceiling price for the sector, although the companies said they couldn’t decrease their prices due to the high taxes.

The Energy Market Regulatory Authority (EPDK) compared Turkey’s gas prices with the Mediterranean countries’ prices that are accepted as “reference price.” The EPDK, which determined that gas, diesel oil and liquefied petroleum gas (LPG) prices in Turkey were higher than average prices, sent a warning letter to the companies.

The executives, who met with the EPDK officials, stated that the vendors and distributors had only a share of 0.4 Turkish Liras (40 kuruş) on gas that cost 4.8 liras ($2.4) per liter. “Our margins are already limited. The real burden on fuel oil prices is taxes. It is not possible to make a discount on the share of the vendors-distributors,” they said.

Distributors’ share higher than average

The EPDK told the companies’ executives that as the vendors-distributors had a 0.5 liras share on diesel oil and 0.4 liras share on gas, they were 0.1-0.15 liras higher than the Mediterranean’s prices, said an executive, adding that the EPDK and the sector professionals would make assessments together.

The executives said the EPDK gave them Aug. 7 as deadline and if they decided on a ceiling price, they would need the EPDK’s decision.