Turkey's BOTAS Increased Gas Prices by Almost 50%

https://www.reuters.com/article/turkey-energy/update-2-turkeys-botas-hikes-natural-gas-price-for-power-generation-by-50-pct-sources-idUSL5N1UR69E

 

By Orhan Coskun 

ANKARA, July 31 (Reuters) - Turkey’s state pipeline operator Botas will hike the price of natural gas used for electricity production by 50 percent as of Wednesday, sources said. 

The price hike was “inevitable” due to a weaker lira pushing oil and natural gas prices higher, as Turkey is mostly dependent on energy imports, energy sources told Reuters. 

Earlier on Tuesday, the central bank hiked its crude oil price assumption to $73 from $68. 

 

The increased natural gas prices are based on an exchange rate of 4.86 lira to the dollar, but the payments of producers will be calculated based on the official spot rate of the payment day, the sources said. 

Botas said later on Tuesday it had raised natural gas prices for residential use by 9 percent effective Aug. 1. 

Also on Tuesday, the energy regulation authority raised electricity prices by 14 percent for industrial use and by 9 percent for residential use effective Aug. 1, the country’s Official Gazette said. 

Almost a third of Turkey’s total 293 billion megawatt power production came from natural gas power plants in 2017. 

 

The price of natural gas for producers rose to 1,312 lira ($267) per 1,000 cubic metres, sources told Reuters.

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TV: This is just a beginning.

 

 

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The lira was down 42% in 2018 through last Friday. But the decline in the first 10 days of August was particularly sharp: 25%. Meanwhile, the S&P 500 IndexSPX, -0.19%  returned 0.8% and the Dow Jones Industrial Average DJIA, -0.30% was flat for the first 10 days of the month. But a dozen S&P 500 stocks were down at least 10% in the first 10 days of August:

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On 7/31/2018 at 5:02 PM, Tugce Varol said:

https://www.reuters.com/article/turkey-energy/update-2-turkeys-botas-hikes-natural-gas-price-for-power-generation-by-50-pct-sources-idUSL5N1UR69E

 

By Orhan Coskun 

ANKARA, July 31 (Reuters) - Turkey’s state pipeline operator Botas will hike the price of natural gas used for electricity production by 50 percent as of Wednesday, sources said. 

The price hike was “inevitable” due to a weaker lira pushing oil and natural gas prices higher, as Turkey is mostly dependent on energy imports, energy sources told Reuters. 

Earlier on Tuesday, the central bank hiked its crude oil price assumption to $73 from $68. 

 

The increased natural gas prices are based on an exchange rate of 4.86 lira to the dollar, but the payments of producers will be calculated based on the official spot rate of the payment day, the sources said. 

Botas said later on Tuesday it had raised natural gas prices for residential use by 9 percent effective Aug. 1. 

Also on Tuesday, the energy regulation authority raised electricity prices by 14 percent for industrial use and by 9 percent for residential use effective Aug. 1, the country’s Official Gazette said. 

Almost a third of Turkey’s total 293 billion megawatt power production came from natural gas power plants in 2017. 

 

The price of natural gas for producers rose to 1,312 lira ($267) per 1,000 cubic metres, sources told Reuters.

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TV: This is just a beginning.

 

 

It is not just what's happening in Turkey but a combination of currency crisis, liquidity crisis, rising US $ and tariffs war! A perfect storm for global reset!

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