The electoral gas will be paid with debt
Free natural gas, announced by President Recep Tayyip Erdoğan as the good news of the elections, came into effect with the presidential decree published in the Official Gazette. In accordance with the decree, the entire 38-day use of natural gas by homes, places of worship, and cemevi subscribers from April 24, 2023 to May 31, 2023, and 25 cubic meters of future bills until April 1, 2023. May 2024 will be paid by the Ministry of Finance.
9.5 BILLION TL MONTHLY
Payment will be made by money transfer to BOTAŞ under the name of assignment. Since there is no allocation for this purpose in the 2023 budget, it is expected that almost all the cost will be covered by internal and external borrowing. The Ministry of Energy will also pay energy distribution companies for the natural gas delivered free of charge to citizens. Unlimited free pre-election natural gas use covers a total of 38 days between April 24 and May 31. Homes consume an average of 2.4 billion cubic meters of natural gas in April and 900 million cubic meters in May. In this context, it is estimated that approximately 560 million cubic meters of natural gas were used in the last 7 days of April.
Taking into account that consumption will increase to 1 billion cubic meters this May due to free use, the cost of 38 days of free gas for the Treasury will be close to 9.5 billion lira. In addition, there will be no charge for the use of 25 cubic meters of natural gas per month for approximately 19 million 79 thousand homes during a year. In this way, the Treasury will provide approximately 5.7 billion cubic meters of free natural gas, which costs approximately 34.7 billion lira. Treasury borrowing to cover all natural gas is expected to reach TL 44.2bn.
Domestic gas does not comply
– The good news of free gas given before the elections was presented as if all domestic gas to be produced would be distributed free to the public, and imported gas would not be given free. However, even if domestic gas is produced in the indicated amount, it only reaches 3.6 billion cubic meters per year. Considering that 5,700 million cubic meters of gas are required for 25 cubic meters of natural gas and 1,000,560 million cubic meters for 38 days of free gas, a total of 7,300 million cubic meters. Domestic gas is not enough to cover even half of the gas that will be distributed free of charge. Therefore, to go abroad for free gasoline.
currency will be paid.