Turkey implements tiered natural gas pricing system

Turkey is implementing a tiered natural gas pricing system that significantly impacts household bills as cooler weather increases consumption. Under the system established by BOTAŞ, residential users are subject to two different rates: Kademe-1 for consumption within a specific monthly limit and Kademe-2 for usage exceeding that limit.

A critical aspect of this policy is that if a household exceeds its monthly consumption threshold, the entire amount of gas used during that month is billed at the higher Kademe-2 rate, rather than just the excess amount. The price difference between the two tiers is approximately 70 percent, with Kademe-1 priced at 10.62 lira per cubic meter and Kademe-2 at 18 lira.

Consumption limits are not uniform across the country; they vary by province and month based on local climate conditions and historical data. For example, in Istanbul, the September limit is set at 29.23 cubic meters, while in Ankara, it is 40.69 cubic meters. Limits increase during winter months, with Erzurum reaching a limit of 319.60 cubic meters in December.