Türkiye subsidized 150 billion liras for natural gas in 1H22: Energy min.

Türkiye subsidized 150 billion Turkish liras worth of natural gas in the first six months of this year, equivalent to between 1,800 and 2,000 liras per capita, the Turkish Energy and Natural Resources Minister Fatih Donmez said on Monday.

Speaking at a program organized by the Justice and Development (AK) Party Istanbul Provincial Presidency, Donmez lauded the significant progress made in gas distribution throughout the country, to the point that now 80% of the population has access to natural gas.

In 2002, natural gas was available only in five provinces and more than 50 but had expanded to more than 650 settlements throughout all 81 provinces, Donmez said.

Türkiye has not been immune to spikes in global energy prices and has seen a rise in natural gas prices to highs of $3,500 per 1,000 cubic meters two weeks ago, from the lows of $150 per 1,000 cubic meters two years ago. Currently, prices have retreated to $2,500 per 1,000 cubic meters.

He said the government’s efforts have helped stem the impact of such spikes through subsidies, which he said would continue in the second half of the year.

'In fact, the amount of subsidies we gave for electricity and natural gas totaled 100 billion liras last year. In the first six months of this year, subsidies amounted to 150 billion liras. We made a contribution of 1,800 to 2,000 liras per capita.'

Donmez cited the example of the price fluctuation in Brent oil, which currently trades in the $90-100 dollar band per barrel from below $50 during the COVID-19 period, following which highs of $140 per barrel were reached.