Türkiye will temporarily eliminate special consumption taxes on diesel fuel for the rest of August before phasing them back in incrementally through the end of the year, Treasury and Finance Minister Mehmet Şimşek announced on Aug. 13.
The tax relief measure, enacted by presidential decree, aims to shield consumers and producers from global price spikes triggered by geopolitical tensions while curbing domestic inflationary pressures.
“We are using the fiscal space created through budget discipline and our fight against the informal economy to support the disinflation process,” Şimşek said in a statement on social media detailing the policy.
“By doing so, we aim to lighten cost pressures as well as reduce their impact on inflation expectations and pricing behavior.”
Under the new policy, the Special Consumption Tax (ÖTV) on diesel, which previously stood at roughly 7 Turkish Liras per liter, has been reduced to zero through Aug. 31.
Beginning in September, the tax will be reinstated in scheduled monthly increments.
Diesel fuel prices in Türkiye have faced severe upward pressure due to geopolitical developments affecting global energy markets. As fuel costs directly feed into freight, agriculture and public transportation, sudden price surges threaten Türkiye’s broader economic effort to bring down inflation.
Şimşek emphasized that achieving price stability remains the primary prerequisite for lasting prosperity and a fairer distribution of income, adding that the government will continue to pursue disinflationary policies with determination.
