Turkey’s fuel prices see second hike in 15 days

Fuel prices continue to burn a hole in Turkish citizens’ pockets, with a 19 kuruş price hike set to go into effect early on Wednesday in what will be the second rise in the last 15 days.

“As of April 3, 19 Kurus increase in gasoline prices to be reflected/liter pump prices,” EPGIS announced the price hike in a Twitter account.

With the latest price increases, one liter of gasoline increased from 6.71 Liras to 6.90 Lira ($1.22) in Istanbul; 6.78 Lira to 6.97 ($1.24) Lira in Ankara and 6.76 to 6.95 Lira ($1.23) in Izmir, the Employers Union of Energy Petroleum Gas Supply Stations (EPGİS) announced the new prices.

The slight difference in the petrol prices is because of transportation-related cost. The gasoline prices determined by the distribution companies show little difference in cities due to their competition and transport related factors.

The last petrol prices increase recorded 13 Kurus on 18 March.

The Turkish government adopted a sliding scale system in fuel oil prices in May last year and with the support of the government’s Special Consumption Tax help, the price hikes were not reflected on gasoline.

However, the Special Consumption Tax support for petrol, diesel, and autogas was removed in November and December.

Investing.com reported that the sliding scale system re-activated only for the autogas and 5 Kurus increase not reflected on the price.

The Special Consumption Tax support cost the Turkish government 8.3 billion Lira between last May and in the middle of November. The ruling Justice and Development Party (AKP) doesn’t show a willingness to subsidize petrol and diesel.

The Turkish currency came under pressure as the United States halted delivery of equipment related to a Turkish order of F-35 fighter planes. The Lira eased to 5.62 against the dollar early on Wednesday and the weak Turkish currency is accelerating petrol price hikes.

Source: ipa