Turkey plans a major natural gas price cut in May if oil remains low

Turkish citizens would start to benefit from the low price levels of oil as of May if the Turkish lira does not lose too much against U.S. dollar, Saltuk Duzyol told to the Anatolian Agency.

"Of course the proportion of the price cut will be based on foreign currency rates, because in the end, natural gas is something we import," he was quoted as saying.

Botas determines the prices of the natural gas by automatic pricing mechanism, which makes the price calculation in every three months based on the costs.

Gas prices in Turkey have increased by nearly 80 percent since 2007 as oil prices climbed, reaching a peak of $147 per barrel in last July. Oil prices declined sharply after July, trading at $40 levels due to the lack of demand stemming from the global recession.

The Turkish government lowered natural gas prices by as much as 17 percent in January 2009 following the decline in the global energy prices, the cut was less when compared to the decline in oil prices.