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Turkish motorists are set to face another sharp increase in fuel costs on Friday, July 17, as renewed fighting between the United States and Iran pushes global oil prices higher and heightens concerns over energy supplies.
Diesel prices are expected to rise by ₺3.9 ($0.08) per liter, while gasoline prices are set to increase by ₺1 as international benchmark Brent crude topped $85 per barrel again.
Currently, gasoline sells for ₺64.51 per liter in Istanbul, while diesel costs ₺69.96. Following the latest increase, gasoline is expected to rise to ₺65.51 per liter and diesel to ₺73.86.
Compared with prices before the conflict, gasoline will have climbed ₺8.24, or 14.4%, while diesel will be up ₺13.49, or 22.3%.
Fuel prices in Türkiye are determined by international oil prices, the lira's exchange rate against the U.S. dollar, refinery costs, distribution and dealer margins, and taxes, including the special consumption tax (SCT) and value-added tax (VAT).
To limit the impact of sharp increases in global oil prices, the government also operates a fuel tax buffer mechanism that adjusts the SCT.
The mechanism was reintroduced in March following the Strait of Hormuz crisis, allowing the government to absorb up to 75% of fuel price increases through temporary SCT reductions.
However, a presidential decree issued earlier this month began phasing out the tax relief, reducing the government's ability to cushion rising fuel costs.
The system will now cover up to 50% of price increases through July and 25% during August and September before expiring on Oct. 1, leaving consumers to bear the full impact of future fuel price increases.
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