Turkey's Diesel Dilemma: Rising Costs Amid Sanctions

Turkey faces increased diesel prices due to Western sanctions on Russian oil companies, impacting imports and insurance costs. Major supplier Guzel Enerji announced price hikes, citing sanctions against Lukoil and Rosneft. To meet domestic demand, Turkish fuel suppliers seek non-Russian diesel alternatives as dependency on Russian diesel persists.

Turkey is grappling with soaring diesel prices following Western sanctions on Russian oil firms. Major supplier Guzel Enerji recently informed customers of impending price hikes due to the complicated market conditions caused by restrictions against Lukoil and Rosneft.

The country's reliance on Russian diesel poses challenges, especially since Turkey emerged as the leading importer after Western nations banned Russian oil over Ukraine-related tensions. Guzel Enerji, backed by Turkey's army pension fund Oyak, raised wholesale diesel rates from November 3.

Efforts are underway by local companies to source more diesel from domestic refineries such as Tupras and SOCAR, and explore alternative non-Russian sources to counteract the supply crunch. Currently, Turkey's diesel demand reaches around 534,000 barrels per day, a significant portion of which comes from Russia.

(With inputs from agencies.)