 recorded a net loss of 44.9 billion lira ($1 billion) in 2024 as the government continued to keep natural gas prices below market levels, according to the Ministry of Treasury and Finance’s 2024 Public Enterprises Report.){kind=link}
Turkey’s state-owned pipeline operator Petroleum Pipeline Corporation (BOTAŞ) recorded a net loss of 44.9 billion lira ($1 billion) in 2024 as the government continued to keep natural gas prices below market levels, according to the Ministry of Treasury and Finance’s 2024 Public Enterprises Report.
The report shows that losses among state economic enterprises have risen sharply under price-control policies designed to shield households from higher energy costs. These policies have placed a growing burden on the budget, with state companies receiving treasury transfers that reimburse them for losses incurred when they are ordered to sell below cost. Such spending by the treasury rose 55.4 percent in 2024 to 279.2 billion lira ($8.7 billion).
BOTAŞ received 23.6 percent of all such payments last year, second only to the Electricity Generation Corporation (EÜAŞ), which accounted for 70.4 percent. According to the report, BOTAŞ’s financial imbalance resulted from sales costs of 735.9 billion lira exceeding its gross sales revenue of 733.6 billion lira.
The data reflect the government’s long-standing practice of using energy subsidies to limit the impact of inflation on consumers. The approach, however, has made BOTAŞ the most unprofitable public enterprise, surpassing losses posted by the Turkish State Railways (TCDD).
Several other state companies also reported large deficits. The TCDD posted a 36.6 billion lira loss, while its subsidiary, TCDD Transport, recorded 25.1 billion lira. The Turkish Hard Coal Enterprise (TTK) reported a 12.7 billion lira loss, and EÜAŞ ended the year with a 12.4 billion lira loss.
The report also noted that income-loss compensations paid to state-owned banks and the Agricultural Credit Cooperative rose 237 percent in 2024 to 125.3 billion lira, highlighting the fiscal cost of state intervention in credit markets.
A few state enterprises remained profitable, including the Turkish Electricity Transmission Corporation (TEİAŞ), which posted a 38.8 billion lira profit, and Eti Maden, which reported 29.3 billion lira in profit. Even so, the combined net loss of Turkey’s 19 state-owned enterprises reached 56.6 billion lira for the year.