The Treasury and Finance Ministry has completed preparations to reduce the special consumption tax on diesel as it seeks to limit the domestic impact of rising global oil prices, according to information obtained by Hürriyet.
The measure is expected to be published in the Official Gazette and take effect overnight. The size of the proposed tax cut and its expected effect on pump prices have not yet been disclosed.
Brent crude traded near $90 a barrel on Aug. 12 as disruption in the Strait of Hormuz and stalled U.S.-Iran talks continued to pressure oil markets.
About one-fifth of global petroleum liquids consumption normally passes through the strait.
The tax adjustment is intended to prevent higher diesel prices from feeding into transport, agricultural and industrial costs and adding to inflationary pressure.
The reported move follows a July revision to the sliding-scale fuel tax mechanism known as “eşel mobil.”
Under the current arrangement, 25 percent of increases in domestic refinery prices between Aug. 1 and Sept. 30 are offset through lower fuel taxes, with the remainder reflected at the pump.
The mechanism is scheduled to end on Oct. 1.
