Minister Şimşek praises the 'sliding scale system': If we hadn't implemented it, the price per liter would have been 83 liras

Recalling last year's Israel-Iran War, Şimşek stated that the closure of the Strait of Hormuz and the impact on global energy and commodity trade on such a large scale would have a "certain" effect on Turkey.

Expressing his view that they have managed this shock well so far, Şimşek used the following expressions:

"Our Central Bank has taken measures; it has taken significant steps, especially to manage foreign exchange and TL liquidity. TL-settled forward foreign exchange sale transactions have been initiated.

Our Capital Markets Board has taken important measures against speculative movements in the stock market and capital markets; we have temporarily banned short selling on the stock exchange. Borsa Istanbul has taken steps. We reduced the order processing intensity, thereby reducing volatility in the market, that is, the ups and downs, the wave amplitude.

"THE LITER OF DIESEL WOULD HAVE BEEN 83 LIRAS AND 10 KURUS"

As the Ministry, we switched to the sliding scale system. We were expecting a serious reaction in energy prices. We sat down and evaluated how the risk of the Gulf closing could be reflected in prices.

If we had not implemented the sliding scale system, as of today, for example, the price of a liter of diesel in Ankara would have been 83 liras and 10 kurus. With this rise in oil prices, the diesel price, which would have been 83 liras and 10 kurus, is currently 67 liras and 10 kurus thanks to the sliding scale system. As of today, the price of gasoline is 62 liras and 30 kurus, whereas if we had not activated this sliding scale, it would have been 71 liras and 11 kurus.

Why did we do this? Of course, we wanted to limit the reflections on our citizens. We believe this is temporary. If it were permanent, this would not be sustainable. We activated this system with the assumption that it would be temporary. Because its budget impact is very large, it is an important revenue item for us."

News Source: 12punto