Turkey’s Employers Union of Energy Petroleum Gas Supply Stations (EPGİS) has announced that from today the diesel fuel price would increase by 23 Kurus.
The EPGIS shared the details following the price hike, the sliding scale system was activated after the Turkish government last May introduced the system to prevent motorists from paying a price hike on fuel with the support of the government’s Special Consumption Tax help, Anadolu Agency reported.
With the support of the sliding scale system, 22 cents of the 23 cents increase in diesel prices is reflected in the pump, the remaining 1 cent increase will be covered by the tax.
The new diesel price per liter increased to 6.52 lira from 6.30 in capital Ankara, 6.25 Lira to 6.47 Lira in Istanbul, and from 6.31 Lira to 6.53 Lira in Izmir.
As distribution companies determine the prices, the oil prices show little changes in different regions due to competitions and transportation facts.
The sliding scale system
The sliding scale system balances oil prices as the exchange rate and international price hike cause a sharp increase in the energy market.
Ankara has been subsidizing oil prices through the sliding system and not reflected price hike to the pump since last May but the government temporarily de-activated the system last November as the oil prices reduced below to the rate covered by the tax.
Turkey is an oil-dependent country and the economy is more vulnerable to oil price increases as the country entered a recession late last year.
The Turkish lira continues to weaken against the U.S. Dollar as Ankara and Washington continue to spat over the former’s purchase of the Russian S-400 defense missile system. Since last August, the Lira lost almost 50 percent of its values.
US President Donald Trump re-imposed sanctions on Iran last November and Ankara stopped importing oil from Iran. The ceasing of Iran oil imports has sharply increased Turkey’s import bill.