Turkish government to allow private companies to import natural gas

Turkey's state company Botas had raised its natural gas prices in line with a new cost-based pricing mechanism on Friday. The gas price rise was fixed at 16.88 percent for residential properties and 18.77 percent for industry.

 

The cost-based pricing mechanism, introduced by the High Planning Board from the start of July, applies to all state energy companies and is seen as an important step before further privatizations of power distribution and production facilities.Â

 

Officials and expert suggest the increases would continue during the winter, when the gas usage hits its peak. The energy prices are seen as the main driver of the inflation which runs at double digit figures.

 

The entrance of other suppliers to the market is expected to reduce the prices and AA said the government would gradually lift the limits on the gas imports of the private sector. Legal amendments should be made to allow private companies to import natural gas.

 

Turkey's natural gas consumption has been increasing as in the first six months of the year more than 2 billion cubic meter natural gas was used. Turkey had invested more than 7 billion dollars to improve the natural gas networks in the country.