The implementation of a tiered pricing tariff for natural gas is starting.

Energy Minister Bayraktar stated in his evaluation to journalists that President Recep Tayyip Erdoğan held discussions with Russian President Putin on energy matters during the BRICS Summit held in Kazan on October 24.

"WE WANT A SPECIAL PRICE"

Regarding natural gas, Bayraktar explained that they have three topics on the agenda with Russia: "One is the Natural Gas Trade Center. The other is the issue of natural gas prices with Russia. As Turkey, we want a special price for us. Additionally, there is a very large contract that will expire at the end of 2025, and we are discussing the renewal conditions for this. A package agreement needs to be developed here. Within 2025, a company will operate this trade platform in the Istanbul Financial Center with a 50-50 partnership between Botaş and Gazprom." he said.

"UKRAINE TRANSIT IS EXPIRING"

Bayraktar noted that this winter could be "interesting" in terms of natural gas, stating, "This year, the Ukraine transit is expiring, and it seems that the duration will not be extended. This means that gas from Russia to Europe could be cut off at the end of December or in January. We want to ensure that if gas prices rise in Europe, it does not have a negative impact on us. We do not have a problem with supply security, but we want to avoid any negative effects related to prices. Therefore, the price and new contract process with Russia is important," he said.

"PAY AS MUCH AS YOU USE IN NATURAL GAS AND ELECTRICITY"

Minister Bayraktar expressed that in order for subsidies in energy to be provided to those in need, there will be a gradual pricing system for natural gas next year, just as there will be for electricity. He explained the details of the new period where "those who consume less will pay the real cost of what they consume" and said, "We want to transition to a gradual pricing system for natural gas in February 2025, just like we do for electricity. However, there are different situations in natural gas. For example, a normal citizen living in a cold place like his hometown Erzurum may consume 1200 cubic meters, while in Antalya, this consumption drops to 600 cubic meters. There will be a study based on provinces here. Natural gas is a bit more complex, but we also want to transition to a gradual pricing system there," he said.