Natural gas price sees 37 percent hike

Natural gas price sees 37 percent hike

ISTANBUL - Hürriyet Daily News
Natural gas price sees 37 percent hike

Hürriyet photo

Turkey’s state-run pipeline company, Botaş, has increased the price of natural gas to electricity producers by 37 percent, which is likely to be reflected in consumer electricity bills next year.

The raise will take effect as of today, officials from the Energy Ministry have said, according to local media reports.

Accordingly the price band of 1,000 cubic meters of gas increased to 1,400-1,427 Turkish Liras from 1,013-1,040 liras.

More than 40 percent of Turkey’s electricity is produced by natural gas-fired power plants, according official data.

Botaş sells the most natural gas to the electricity production sector, official figures show. Some 18.9 billion cubic meters of the total 39.4 billion cubic meters of gas that was sold last year went to that sector, while households received 10.1 billion cubic meters.

Electricity and natural gas prices were increased nearly 10 percent in the beginning of October.

As electricity and natural gas are the main inputs in industrial and agricultural production, a rise in their prices may trigger price hikes in industrial goods and food next year.