Türkiye cuts gasoline prices, battling 25% yearly fuel increase
A pump rests in a car at a petrol station, Istanbul, Türkiye, March 22, 2019. (Shutterstock Photo)
In response to the ongoing fluctuations in exchange rates, crude oil prices, and recent tax hikes, Türkiye has announced a reduction in gasoline prices. However, despite this latest decrease, fuel prices have seen significant increases since the beginning of the year.
Gasoline price update in Türkiye
- New Price Effective Aug. 23: Gasoline prices will be reduced by ₺1.42 per liter, bringing the price down to ₺43.24.
- Motorin Prices unchanged: The price for motorin remains steady at ₺43.94 per liter.
| City | Gasoline (₺) | Motorin (₺) | LPG (Oto Gas) (₺) |
|---|---|---|---|
| Istanbul (European side) | 43.24 | 43.94 | 23.23 |
| Istanbul (Asian side) | 43.13 | 43.87 | 22.69 |
| Ankara | 43.55 | 44.35 | 23.24 |
| Izmir | 44.05 | 44.87 | 22.99 |
Year-to-date increase
- Gasoline: Despite the recent price drop, gasoline prices have surged by 25% since the start of the year.
- Motorin: Motorin prices have also increased by 18.3% over the same period.
How fuel prices calculated?
Fuel prices in Türkiye are determined by a combination of factors:
- Mediterranean market pricing: Refineries base prices on the average cost of processed products in the Mediterranean market, including Türkiye.
- Exchange rate impact: Fluctuations in the U.S. dollar exchange rate also play a significant role in setting fuel prices.
- Taxation: The final price includes additional costs such as Special Consumption Tax (OTV) and Energy Market Regulatory Authority (EPDK) shares, which are added to the refinery price before VAT is applied.
- Variability in pricing: Due to competition and market freedom, the prices applied by distribution companies can vary slightly between different companies and regions within Türkiye.
