Sliding scale system implemented for fuel prices

The attack launched by the US and Israel on Iran and the transit embargo imposed on the Strait of Hormuz had driven up oil prices.

It was learned that the expected 6.69 lira hike in diesel prices was postponed due to the expectation that the sliding scale system would be activated.

The decision to switch to the sliding scale system was published in the Official Gazette today and has entered into force.

Depending on international oil prices or exchange rates, in the event of an increase in fuel prices, the Special Consumption Tax (ÖTV) amounts will be reduced by up to 75 percent of the increase.

According to information obtained from the Ministry of Treasury and Finance, it was decided to temporarily activate the sliding scale system with this decree in order to limit the impact of rising oil prices caused by geopolitical developments on inflation and to reduce the burden on citizens' budgets.

The system will be applied by taking March 2 as a base; if the prices of certain petroleum products increase from this date onwards, the Special Consumption Tax (ÖTV) on these products will be reduced by up to 75 percent of the increase amount.

In this context, there could be a reduction of up to 14.8277 lira per liter for gasoline, 13.9006 lira per liter for diesel, and 11.3830 lira per kilogram for LPG.

If the prices of these products fall, the Special Consumption Tax (ÖTV) will be increased by up to 75 percent of the decrease amount, and this increased amount will not exceed the Special Consumption Tax (ÖTV) applied on March 2.

News Source: 12punto