Turkish minister says energy costs to fall on Lira rise

Turkey's Minister of Energy Taner Yildiz says Lira's increased value against US dollar will reflect on energy prices.

Turkish minister says energy costs to fall on Lira rise
World Bulletin / News Desk 

The increase in the value of the Turkish Lira against the US dollar will reflect on energy prices, Turkey's minister of energy said Wednesday.
Late Tuesday, Turkey's Central Bank raised the overnight interest rates, with the borrowing rate rising to 8 percent from 3.5 percent, and the lending rate to 12 percent from 7.75 percent.

As a result of the increase, the dollar decreased against the Lira from $2.26, to $2.18. The euro has decreased from 3.09 to 2.97.

Speaking to reporters while accompanying Prime Minister Recep Tayyip Erdogan on a trip to Iran on Wednesday, Turkish Energy and Natural Resources Minister Taner Yildiz said he expects Turkey´s energy cost to go down with the Lira's partial increase.

When questioned by a journalist, Yildiz corrected remarks by Iranian First Deputy President Ishak Cihangiri that an “oil agreement has been reached with Turkey.”

“This is not to reach a deal. It is a communion between two countries. We still need to talk with Iran what we can do about the natural gas price and its amount."

He described the erroneous report as "a mistake arising from the translation.”

Turkey used 47 billion cubic meters in 2013 according to the Energy Market Regulatory Authority (EMRA).

In October, Taner Yildiz said Turkey would raise its gas imports from Iran - currently standing at 10 billion cubic meters a year.

Iran is Turkey’s second biggest gas supplier after Russia. Turkey uses a significant portion of its imported Iranian natural gas to generate electricity.
Last Mod: 29 Ocak 2014, 15:49
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