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Türkiye's Treasury and Finance Ministry moved to cut the special consumption tax (SCT) on diesel to zero for the rest of August, paving the way for a major reduction in pump prices and easing inflationary pressure.
The measure also removes diesel from the sliding-price tax system, with the SCT set to rise by ₺3 each month, reaching ₺3 in September, ₺6 in October, ₺9 in November and ₺12 in December.
The decision effectively ends the sliding-price mechanism for diesel. Previously, ₺7.77 in SCT was levied per liter. Following the decision, motorists began expecting a reduction in diesel prices, although no announcement has been made yet.
As of the latest listed prices, diesel costs ₺80.07 ($1.68) per liter on Istanbul's European side and ₺79.93 on the Asian side. In other major cities, prices stand at ₺81.19 per liter in Ankara, ₺81.46 in Izmir, ₺82.02 in Adana, ₺82.51 in Antalya and ₺81.08 in Bursa.
From the new year, the duty will be set at ₺13.9006, returning to the level in place before the sliding-price system was introduced.
For gasoline and LPG, the current sliding-price system will remain in place until Sept. 30. If domestic refinery prices rise, 25% of the increase will be offset through the excise tax, while any decline in refinery prices will continue to be fully reflected through higher excise duty.
The system will be fully abolished from Oct. 1, even if excise duty rates have not returned to their pre-system levels, with fuel prices then moving to free-market pricing.
The reduction comes as diesel prices have risen more sharply than gasoline and LPG amid widening refining margins, particularly for diesel, as Middle East supply disruptions have tightened global refined-product markets.
Tupras, Türkiye's largest refiner, reported a 64% month-on-month increase in its diesel margin in July, compared with a 40% rise for gasoline. The sliding-scale tax mechanism has also provided less protection against rising fuel costs since August, with only 25% of increases in domestic refinery prices now offset through SCT.
As of the latest price hike on Aug. 11, diesel prices are 14.8% higher than a month earlier and 32.75% above pre-war levels, rising from ₺60.21 to ₺79.93 per liter.
According to information obtained by the state-run Anadolu Agency from the ministry, the government took the decision to reduce pressure on consumers, transport operators and industrial companies by lowering diesel prices while supporting its fight against inflation.
Officials also expect the measure to limit cost pressures on economic activity and competitiveness, particularly because diesel costs feed into food, transportation and industrial prices.
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