High price hikes coming for fuel, cigarettes, and alcohol with inflation data to be announced on July 3

The inflation data to be announced by TUIK on Thursday, July 3, will directly affect not only the salaries of public employees and retirees but also prices for basic expenses.

Due to the change in the Domestic Producer Price Index (D-PPI), a new wave of price hikes appears inevitable for many products, especially fuel, tobacco, and alcohol.

The announced rates will also increase many items, from the 65-year-old pension to disability benefits, and from the severance pay ceiling to the fee for paid military service. However, the most striking reflection is expected to be seen in fuel, cigarettes, and alcoholic beverages.

Due to the Special Consumption Tax (SCT) mechanism, the increase in the D-PPI is automatically reflected in tax rates. Unless a different decision is issued by the Presidency, these hikes will be directly reflected in shelf and pump prices.

According to the latest data, the D-PPI for the January-May period was largely at the 12.92 percent level. An increase in the 1 to 2 percent band is also expected in June. According to estimates, if a total six-month increase of 14.61 percent occurs, new records will be seen in fuel, cigarette, and alcohol prices.

PRICE INCREASE IN FUEL IS INEVITABLE

As a result of the estimated 14.61 percent increase, the hikes stemming from the SCT will directly push pump prices upward. Vehicle owners will face higher fuel costs with the new prices.

CIGARETTE PACKS WILL FACE HIKES OF UP TO 10 TL

On the cigarette side, while a minimum specific tax of 1.8313 TL is currently collected for each stick, it is projected that this figure will rise to 2.0988 TL after the hike. The specific tax is expected to increase from 10.50 TL to 12.03 TL. These developments will be reflected as an additional hike of between 8 and 10 TL per pack of cigarettes.

NEW PRICES ON THE AGENDA FOR ALCOHOLIC BEVERAGES

A similar picture is emerging for alcoholic beverages. For example, the SCT on 1 liter of raki will reach around 1,565 TL with a 14.61 percent increase from 1,365.72 TL. Thus, the tax alone on a bottle of raki with a 45 percent alcohol content will rise to as much as 704 TL.

The automatic tax increases that have come to the agenda with the effect of the D-PPI seem likely to leave consumers facing higher prices for basic needs.

News Source: 12punto