A significant fuel distributor in Turkey has informed its wholesale clients that it will be increasing diesel prices due to supply constraints and rising insurance and financing expenses following Western sanctions on Russian oil firms, as per a document reviewed by Reuters.
Turkey relies heavily on diesel supplies from Russia and has been the leading importer of Russian diesel since 2022, when Western nations began avoiding Russian oil due to the invasion of Ukraine by Moscow.
Guzel Enerji, a Turkish fuel supplier owned by the military pension fund Oyak, announced an increase in wholesale diesel prices effective November 3. This adjustment was attributed to the sanctions placed by the U.S. on Russian oil companies Lukoil and Rosneft on October 22, according to a letter sent to its clientele that was obtained by Reuters.
Guzel Enerji, ranked as the fourth largest fuel retailer in Turkey for 2024, stated that its diesel import expenses have surged significantly because of the sanctions. The company did not provide comments when approached about the document on Tuesday.
Fuel distributors in Turkey have sought increased diesel supplies from local oil refineries Tupras and SOCAR, based on information from two sources familiar with the situation. Some distributors are looking for non-Russian diesel shipments to satisfy local demand, according to one source.
Tupras and SOCAR have recently begun sourcing more non-Russian crude oil in light of the Western sanctions, as reported by Reuters over the weekend.
According to shipping data from Kpler, Turkey’s diesel imports from Russia surged to over 300,000 barrels per day in 2023 and 2024, compared to just 117,000 bpd in 2022. Brazil has also increased its imports of Russian diesel during this period.
Turkey remains a net importer of diesel, with an annual demand estimated at approximately 534,000 bpd for 2024, according to figures from the energy regulator EPDK.
Vitol, a global trading company, controls Turkey’s largest fuel retailer, Petrol Ofisi, while local conglomerate Koc Holding and oil giant Shell have stakes in other joint-venture retailers across the country.
Additionally, Russian oil producer Tatneft owns a significant fuel retail business in Turkey.