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Türkiye has withdrawn planned fuel price increases that were expected to take effect on Aug. 12, canceling a ₺1.50 per liter increase for gasoline and ₺5.13 for diesel at the pump.
The hike, reported earlier by Turkish media, was expected to push gasoline prices to ₺71.42 ($1.50) per liter in Istanbul, ₺72.89 in Ankara and ₺72.67 in Izmir, while diesel prices were projected to reach ₺85.20, ₺86.32 and ₺86.59, respectively.
However, toward the end of the day, Turkish media reported that the planned increases had been withdrawn.
The planned increase would have come just a day after gasoline prices rose by ₺1.56 per liter at the pump following a ₺2.08 underlying price increase.
As of Tuesday, Aug. 11, gasoline costs ₺69.92 per liter and diesel ₺80.07 in Istanbul's Anadolu side. Prices stand at ₺70.89 and ₺81.19 in Ankara, and ₺71.17 and ₺81.46 in Izmir, respectively.
Although the sliding-scale tax mechanism introduced in March allows part of fuel-price increases to be offset through adjustments to the special consumption tax, the offset is limited to 25% in August and September, before the system is fully phased out by October.
As of Aug. 11, gasoline prices are 11.4% higher than a month earlier, while diesel prices are 14.8% higher.
Fuel prices have a 3.2% direct weight in the Turkish Statistical Institute’s (TurkStat) consumer price basket but remain a key input cost across almost all sectors, potentially adding to broader consumer price pressures.
Fuel prices in Türkiye are largely shaped by international oil and refined-product prices, refinery margins and the lira-dollar exchange rate, with taxes and distribution costs making up the rest of the pump price.
The main driver of the price increases is Brent crude, which has approached $90 a barrel as efforts by the U.S. and Iran to reach a breakthrough on reopening the Strait of Hormuz remain deadlocked.
Refining margins have also widened as Middle East supply disruptions tighten global refined-product markets, particularly for diesel. Tupras, Türkiye’s largest refiner, saw its diesel margin jump 64% month-on-month in July to $75 a barrel, while its gasoline margin rose 40% to $43.9 a barrel.
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