Gasoline prices hiked: Further increases expected in November and December

The sliding-scale system (eşel mobil), which was implemented to prevent global fluctuations in fuel prices and currency movements from being reflected to the consumer, has ended as of today.

The Presidential Decree regarding the matter has been published in the Official Gazette.

With this ÖTV regulation, a new era has begun for gasoline and LPG.

Accordingly, the sliding-scale system, which was put into effect to prevent global fluctuations in fuel prices and currency movements from being reflected to the consumer, has ended as of today.

In order to combat inflation and prevent sudden price shocks in the market, the tax increase on gasoline has been divided into months, similar to the regulation made for diesel in August.

RETURN TO PRE-SLIDING-SCALE SYSTEM FOR LPG

For LPG, the system has returned to what it was before the sliding-scale system.

Accordingly, the ÖTV amount for LPG-type goods, which was last applied at 9.2190 liras per kilogram under the sliding-scale system, has been raised to the pre-system level of 11.3830 liras.

Due to this ÖTV regulation, an increase of approximately 1.48 liras is expected in the LPG autogas pump price starting today.

GRADUAL ÖTV AMOUNT ON FUEL

The expected price increase of 12.47 liras for gasoline due to the return to the pre-sliding-scale system was prevented by reintroducing the ÖTV gradually rather than all at once.

With the end of the sliding-scale system, under normal conditions, an ÖTV increase of 10.39 liras per liter was expected for gasoline, bringing the ÖTV amount to 14.8277 liras—the pre-sliding-scale amount—which would have been reflected as a price hike of approximately 12.47 liras at the pump.

However, in order to reduce price pressure in the market, a "gradual transition" model was introduced for gasoline, similar to the regulation made for diesel in August.

Accordingly, the ÖTV amount on gasoline has been set at 7.9000 liras per liter in October, 11.3600 liras in November, and 14.8277 liras (the pre-sliding-scale ÖTV amount) in December.

Due to this ÖTV regulation, an increase of approximately 4.15 liras is expected in the gasoline pump price starting today. Consequently, it was ensured that the market price would increase by 4.15 liras instead of 12.47 liras on October 1, resulting in an increase that is 8.32 liras lower.

News Source: 12punto