A prominent fuel supplier in Turkey has informed its wholesale clients of an impending increase in diesel prices, attributing this change to Western sanctions on Russian oil firms that have resulted in supply disruptions as well as higher insurance and financing costs, as per a document reviewed by Reuters.
Turkey significantly relies on diesel imports from Russia and has been the leading importer of Russian diesel since 2022, following the decision by Western nations to distance themselves from Russian oil in response to the invasion of Ukraine.
Guzel Enerji, a fuel supplier owned by Turkey’s military pension fund Oyak, announced an increase in wholesale diesel prices effective from November 3, referring to the sanctions imposed by the U.S. against major Russian oil companies Lukoil and Rosneft on October 22, as noted in a customer letter obtained by Reuters.
As the fourth largest fuel retailer in Turkey for 2024, Guzel Enerji indicated that its diesel import expenses have surged significantly due to these sanctions. The company did not respond to inquiries regarding the document on Tuesday.
According to two sources familiar with the situation, Turkish fuel suppliers have been seeking additional diesel from local refiners Tupras and SOCAR, with some looking for non-Russian diesel shipments to satisfy domestic requirements.
Recent reports by Reuters indicate that Tupras and SOCAR have been acquiring more non-Russian crude oil in light of the ongoing Western sanctions.
Data from Kpler reveals that Turkish diesel imports from Russia increased to over 300,000 barrels per day in 2023 and 2024, up from just 117,000 bpd in 2022. Similarly, Brazil has also increased its imports of Russian diesel during this period.
Turkey remains a net importer of diesel, with an estimated annual requirement of around 534,000 bpd in 2024, according to figures from its energy regulator EPDK.
The largest fuel retailer in Turkey, Petrol Ofisi, is owned by global trading company Vitol, while local conglomerate Koc Holding and oil giant Shell hold stakes in various joint-venture retailers throughout the nation.
Additionally, Russian oil producer Tatneft has ownership in a significant fuel retail operation in Turkey.