International Energy Agency Statement on LPG Supply Security

During his speech at the Liquefied Gas Week Program held in Istanbul, International Energy Agency President Fatih Birol drew attention to the effects of the current energy crisis on the markets and announced that they are in contact with governments regarding LPG supply security.

Global Energy Crisis and Threats

International Energy Agency President Fatih Birol evaluated the challenges facing the energy sector at the event held at the Istanbul Congress Center. He stated that energy issues cannot be handled independently from the current global crisis.

He emphasized that following the time passed since the war, the effects are clearly felt in many different sectors such as oil, natural gas, and fertilizer.

Situation in Diesel and Oil Markets

Stating that crude oil prices are hovering above 100 dollars, but no one directly uses crude oil, Birol reported that diesel prices have doubled compared to before the war.

He drew attention to the fact that unprecedented challenges are being experienced in diesel markets as a result of developments in the Middle East and damage to Russian refineries.

LPG Trade and Impact on Households

He stated that a significant portion of LPG trade is conducted through the Strait of Hormuz and global prices have increased by 60 percent compared to the pre-war period.

He expressed that the crisis directly affects households because more than half of LPG is used for heating and cooking purposes.

Supply Security and Search for New Mechanism

Reminding that there is already an oil stock mechanism within the agency, the official conveyed that talks are underway to establish a new LPG security mechanism.

In this context, it was stated that contacts are ongoing with various government and industry representatives.