Türkiye's energy market has reached a total size of $145 billion, employing around 300,000 people, Energy Market Regulatory Authority (EPDK) Chairperson Mustafa Yılmaz said on Tuesday, highlighting rising investments.
A further TL 776 billion ($17.2 billion) in investments is planned in the industry for between 2026 and 2030, Yılmaz told reporters in the southern province of Antalya. That's up from TL 521 billion made during the 2021-2025 period.
According to Yılmaz, electricity distribution investments will increase by 1.5 times in real terms in the upcoming period, while the maintenance budget aimed at strengthening and modernizing the grid will more than double to TL 189 billion.
Breaking down the sector, Yılmaz said the petroleum market has reached $66 billion, supplying over 34 million tons of fuel annually through more than 13,000 licensed operators. He added that the illegal fuel trade has been largely eliminated and quality standards have reached European levels.
The natural gas market has grown to $30 billion, supported by a 250,000-kilometer network serving 23 million subscribers across all 81 provinces and nearly 1,000 settlements.
Yılmaz also highlighted Türkiye's strong position in liquefied petroleum gas (LPG) and rapid progress in electric vehicle charging infrastructure, which he said is critical for achieving net-zero targets.
On pricing, he said recent electricity and natural gas hikes of around 25% were largely driven by distribution costs, noting that the government continues to shield consumers through significant subsidies.
"Support mechanisms have long prevented full cost pass-through to households," Yılmaz said, adding that pricing decisions are made with careful consideration of purchasing power, inflation targets and macroeconomic balance.
Türkiye is now transitioning from broad-based energy subsidies to a more targeted system, prioritizing low-consumption households while gradually reducing support for higher users.
"This is not about penalizing consumers, but about ensuring public resources are directed to those who need them most," Yılmaz said.
He added that a similar tiered pricing model is being introduced in natural gas, taking into account regional climate conditions and consumption patterns.
Over the past three years, the government has provided approximately TL 1.85 trillion in energy subsidies for electricity and natural gas bills.
On energy storage, Yılmaz said 33 gigawatts of capacity have been allocated, with 2.1 gigawatts already under construction and 208 megawatts operational.
Total investments in storage could potentially reduce $52 billion worth of natural gas imports over the next decade, he noted.
Addressing global market volatility due to the Iran war, Yılmaz pointed to fluctuations in oil prices linked to tensions around the Strait of Hormuz.
Brent crude briefly tested $120 per barrel before hovering in the $100-$110 range.
Türkiye is a major energy importer that neighbors Iran and is among the most exposed emerging market economies to the global energy price surge. But officials have touted Türkiye's "manageable" 10% dependence on Middle East oil and the country's protective diversification steps.
Officials earlier said every $1 increase in oil prices adds about $400 million to Türkiye's energy bill, which was $62 billion last year.
To cushion domestic impacts, Yılmaz said authorities have implemented a fuel pricing mechanism that effectively absorbs tax revenues, amounting to an estimated TL 600 billion in foregone revenue by year-end.
Türkiye currently holds oil stocks equivalent to 90 days of net imports and sources crude from 15 different countries, while domestic production rose 26% in 2025 to 47.9 million barrels.
Yılmaz also noted that parts of national and mandatory reserves have been released in line with measures announced by the International Energy Agency (IEA) due to the fallout of the Middle East conflict.
The 32-member IEA agreed last month to release 400 million barrels of oil from reserves, the largest-ever coordinated release, in a bid to calm oil markets.
The Iran war has triggered a vast extent of production shut-ins across the Gulf and closure of the Strait of Hormuz, which typically handles 20% of the world's daily supply of oil and LNG. Activity has remained curtailed through it as talks between Iran and the United States remain stalled nearly two months into the war.
Yılmaz said 11.6 million barrels of national stocks have been released in line with the IEA stockpile move. License holders have also been allowed to use 46% of their mandatory stocks, he added.
Highlighting long-term progress, he said Türkiye's natural gas market has undergone a "transformational leap" over the past 25 years, with storage capacity reaching 6.3 billion cubic meters and LNG regasification capacity rising to 161 million cubic meters per day.
The daily entry capacity of the transmission system has reached 450 million cubic meters, he noted, while domestic production exceeded 3 billion cubic meters annually as of 2025 and exports reached the level of 2.2 billion cubic meters.
Yılmaz also said spot pipeline gas imports accounted for approximately 11% of total imports with 6.5 billion cubic meters.
He added that the country's organized wholesale gas market and futures trading platform have improved transparency and predictability, positioning Türkiye as a regional hub for energy trading.
