The price of natural gas fell 90 percent but without a discount

EuropeDespite the decrease in natural gas prices in Turkey, no discounts are made. With the war between Russia and Ukraine, the price of natural gas, which rose to 335 euros per megawatt hour (MWh), fell 90 percent to 39.8 euros. However, in natural gas, which increased as prices rose in Europe, no reduction was made despite rapidly falling prices.

THE MINISTER DID NOT FULFILL THE PROMISE

Energy and Natural Resources Minister Fatih Dönmez said in a statement on January 30 that there could be a reduction in natural gas and electricity prices in March. Dönmez said: “As the volatility of prices in the world begins to decrease, we will reflect them to our citizens as discounts. If prices continue to drop, there may be a reduction in electricity and natural gas in March,” he said. After natural gas was discovered in the Black Sea, government officials made statements that natural gas would be consumed cheaper. Noting that drilling work has increased, Dönmez said: “I hope that as this good news continues and the volatility of prices in the world begins to decrease, we will reflect it to our citizens as a discount.” However, neither the fall in international prices nor the discovered resources brought a discount in natural gas. Economist Dr. Oğuz Demir said that since the natural gas used in residences has already been subsidized, the discount could not be made. Noting that the budget paints a negative picture, Demir pointed out that the reduction could not be done lest budget balances be shaken further.

The effect of the war is almost gone.

Stating that natural gas prices have declined around the world, Oğuz Demir said that the effect of the war on the markets has almost disappeared due to hot weather and storage. Explaining that there are 3 important reasons why you cannot discount in Turkey, Demir said: “The first is the movement in the exchange rate. The second is high-cost natural gas that we buy and store on the spot market. The third is the subsidy already given to domestic natural gas, ”he said.