Transition Process to Tiered Tariffs for Natural Gas in 2024

New Tiered Tariff System

The Ministry of Energy and Natural Resources plans to transition to a tiered tariff for natural gas starting in 2024. This new system will create a structure similar to the model applied to electricity tariffs to ensure compliance. The tiered system will offer a pricing model that considers consumption levels and household income levels. Thus, households in the high-income group will not be able to benefit from state subsidies.

Special Arrangements According to Climate Conditions

The new regulation will include special arrangements taking into account the climate conditions of various provinces in Turkey. Particularly, it aims to provide certain conveniences for regions that experience colder winters. Tiers will be determined based on the average natural gas consumption per household in each province. Households that consume above these tiers will fall outside the scope of state support.

850 Billion Lira Energy Support Burden

The ministry is intensifying its efforts to distribute energy support more fairly. As of 2023, the total support provided for electricity and natural gas has exceeded 600 billion lira, while the total resources the government has spent on energy support have reached 850 billion lira. Currently, the natural gas subsidy rate is applied at the level of 60%.

Consumption Limits Will Vary by Province

Consumption limits determined in the new model will differ by province. For example, a monthly average consumption limit of 180 cubic meters will be set for Ankara, 155 cubic meters for Istanbul, and 230 cubic meters for Erzurum. Households that consume more than 50% of this limit will fall outside the support scope. Thus, consumption over 270 cubic meters in Ankara, over 230 cubic meters in Istanbul, and over 345 cubic meters in Erzurum will not be included in the subsidy coverage.

The Majority Will Continue to Benefit from Support

According to ministry data, approximately 84% of households will not be affected by this regulation when it comes into effect. However, the high-income 16% of households, which account for half of natural gas consumption, will no longer benefit from state subsidies. Citizens who believe they do not benefit from the support can apply to the Ministry of Family and Social Services to request a reassessment of their situation. Additionally, with the new system, monthly natural gas consumption amounts will be displayed more transparently on invoices.