The liberalization of downstream oil industry in Turkey

Oğuz, Ender
This study attempts to analyze the deregulation process of downstream oil industry in Turkey and to develop policies concerning Turkish downstream oil industry. Privatization of Petrol Ofisi and TÜPRAŞ and the enactment of the Petroleum Market Law in 2003 were the main implementations of radical deregulation process of downstream oil industry. The main goal of deregulation process has been to create a competitive market. However, establishment of a competitive downstream oil industry has not been achieved, yet. Despite the price liberalization, price competition between distribution companies has not been realized, so far. TÜPRAŞ was transformed to a private monopoly through the privatization. Moreover, price liberalization has increased both the refining margins of TÜPRAŞ and distribution margins of distribution companies at the expense of consumers. A comprehensive competition policy about downstream oil industry should be developed immediately. Furthermore, due to its poor performance since 2003, Energy Market Regulatory Authority’s (EMRA) responsibilities in downstream oil industry should be removed and a new regulatory authority which will solely interest with petroleum sector should be established.


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Citation Formats
E. Oğuz, “The liberalization of downstream oil industry in Turkey,” M.S. - Master of Science, Middle East Technical University, 2006.