Inflation Slows Down Dynamic Tariff Period in Turkish Energy Market

In addition, the fact that there will be no price increase in November and December and the costs will increase due to Brent oil price makes a high prices increase possible in the tariffs to be announced on 1 January. Natural gas has only 1.44% weight in the inflation. According to the calculations of Reuters, the price increase by 9% in natural gas for residential consumption will rise inflation by 0.13 points.

The impact of the increase in natural gas prices on inflation because of 9% increase in residential tariff in August, September and October were 0.39 points according to Reuters’ calculations. When Minister Albayrak announced there would be no price increase until the end of the year, Minister of Energy Fatih Dönmez also made a statement regarding the price predictability in the 9th Energy Summit. Minister Dönmez says:

"The fact that BOTAŞ makes an announcement regarding prices every month has reduced the predictability. If a Brent oil-based formula announced by BOTAŞ as of the beginning of the new year is applied, the prices in the 6-month period will be predictable.”