Hanging fuel nozzles are seen at a gasoline station. (AP Photo)
Türkiye has temporarily introduced a sliding scale (eşel mobil) system to mitigate the impact of rising fuel prices caused by geopolitical developments.
The decision, announced in a presidential decree published in the Official Gazette, aims to limit the effect of global oil price increases on inflation and ease the burden on household budgets, according to officials from the Treasury and Finance Ministry.
Under the mechanism, based on March 2 as the reference date, if the price of certain petroleum products rises after this date, up to 75 percent of the increase will be offset by reducing the Special Consumption Tax (SCT) on those products.
Conversely, if prices fall, up to 75 percent of the decrease will be absorbed by raising the STC, though the tax will not exceed the level applied on March 2.
The measure is designed to ensure that fluctuations in international oil prices and exchange rates have only a limited impact on domestic fuel and LPG prices.
For example, if the price of a product increases by 10 Turkish Liras, only 2.5 liras would be reflected in the market price, while the remaining 7.5 liras would be covered through tax adjustments.
