Statement on Fuel Prices from Energy Minister Bayraktar
Minister of Energy and Natural Resources Alparslan Bayraktar shared the reasons behind the rise in fuel prices and expectations for a decrease.
Following diesel prices reaching 100 lira per liter, a statement regarding when fuel prices will drop—eagerly awaited by millions of citizens—came from Minister of Energy and Natural Resources Alparslan Bayraktar. Minister Bayraktar stated that prices could decline if global supply issues are resolved.
Troubles in Global Oil Supply
Stating that troubles in the global oil supply, primarily the crisis in the Strait of Hormuz, are driving prices upward, Minister of Energy and Natural Resources Alparslan Bayraktar said that problems in critical regions must be resolved for prices to drop.
Expressing that prices will come down if the supply bottleneck is overcome, Minister Bayraktar stated his hope that past low oil price levels could be seen again.
International Markets and Supply-Demand Balance
Stating that reference prices are formed on international exchanges, the Minister explained that product prices such as gasoline, diesel, and LPG emerge with the addition of refining costs to crude oil.
Emphasizing that supply and demand are the fundamental dynamics determining oil prices in the world, Bayraktar noted that a major supply problem is currently being experienced due to wars and crises.
Strait of Hormuz and Energy Crisis
Stating that the world needs 104 million barrels of oil daily and that 20 million barrels of this pass through the Strait of Hormuz, Bayraktar drew attention to the critical importance of this region.
He added that while there is a significant decrease in supply, demand continues to increase, and this situation triggers prices in an upward direction.
Contribution of Domestic Production to the Economy
Answering the question of why prices do not drop despite the discovery of oil in Gabar and natural gas in the Black Sea, the Minister described this situation as the largest energy crisis of modern times.
Stating that Turkey's domestic production contributes to the economy by reducing the money paid for energy imports, Bayraktar emphasized that a daily production of 83,500 barrels is carried out in Gabar, providing an annual economic contribution of 3.2 billion dollars.