International Energy Agency Prepares New Program for LPG Supply Security

International Energy Agency President Fatih Birol stated that global LPG prices have increased by 60 percent compared to the pre-war period and announced that they are consulting with governments and industry representatives to develop a mechanism for LPG supply security.

Effects of the Global Energy Crisis

International Energy Agency President Fatih Birol drew attention to the energy crisis the world is currently experiencing during his speech at an event held in Istanbul.

He stated that eight months have passed since the start of the war and its effects are clearly visible in various sectors alongside oil and natural gas.

Challenges in Diesel Markets

Stating that crude oil prices remain above one hundred dollars, Birol emphasized that people use diesel, gasoline, or LPG directly rather than crude oil.

It was shared that diesel prices have doubled compared to the pre-war period due to developments in the Middle East and damage to Russian refineries.

60 Percent Increase in LPG Prices

It was conveyed that a significant portion of LPG trade is carried out via the Strait of Hormuz and that tightness is being experienced in the markets.

It was recorded that global LPG prices are on average 60 percent higher compared to pre-war levels.

Developments Affecting Households

It was reported that slightly more than fifty percent of LPG is consumed in homes for cooking and heating purposes.

It was stated that since the remaining portion is utilized in the petrochemical and industrial sectors, the current energy crisis directly affects households.

Work on a New Security Mechanism

It was recalled that there is a massive mechanism for oil stocks within the International Energy Agency.

It was stated that talks are ongoing to develop an LPG security mechanism similar to this system, which is activated when disruptions occur in the market.