A significant price cut in diesel prices has been announced, with a 1.50 TL reduction per liter. Gasoline prices remain unchanged as of September 10, 2024.
Fuel Prices in Turkiye: Diesel Prices Decrease by 1.50 TL, Gasoline Unchanged
On September 10, 2024, Turkish consumers received some relief at the pumps, as diesel prices saw a notable reduction. Effective from September 11, 2024, diesel prices will decrease by 1.50 TL per liter. This discount reflects the latest fluctuations in Brent crude oil prices and ongoing shifts in the global fuel market.
Latest Fuel Prices Turkiye (September 10, 2024)
- Diesel (Motorin): 43.24 TL per liter in Istanbul (down 1.50 TL)
- Gasoline: 41.55 TL per liter (no change)
While diesel prices have seen a significant drop, gasoline prices remain stable with no expected changes in the coming days.
Why Did Diesel Prices Drop?
The decrease in diesel prices is tied to several factors influencing global oil markets, particularly the fluctuations in Brent crude oil prices and exchange rates. As fuel prices in Turkiye are directly impacted by these elements, changes in international markets often result in price adjustments at home.
The pricing mechanism for fuel in Turkiye is a complex process that takes into account:
- Brent Crude Oil Prices: Global oil benchmarks that dictate the base price.
- Currency Exchange Rates: The value of the Turkish lira against the U.S. dollar plays a significant role in price determination.
- Refinery Prices: The refinery price is calculated by adding customs-free refinery prices with taxes like ÖTV (Special Consumption Tax) and EPDK (Energy Market Regulatory Authority) fees, excluding VAT.
What’s Behind the Recent Price Volatility?
Fuel prices in Turkiye have been highly sensitive to fluctuations in Brent oil prices and exchange rate shifts, leading to both price increases and reductions. Global economic concerns, such as inflation fears and recession risks, have further contributed to these price swings.
- Crude Oil Fluctuations:
Brent crude oil prices have been volatile due to geopolitical tensions and supply chain issues. This volatility has a direct impact on domestic fuel prices. - Currency Exchange Impact:
The Turkish lira’s value against major currencies, particularly the U.S. dollar, affects the cost of importing fuel. A stronger dollar typically leads to higher fuel prices in Turkiye. - Refinery Pricing Dynamics:
In Turkiye, refinery prices are calculated based on the Mediterranean-Italian markets’ daily CIF (Cost, Insurance, and Freight) Mediterranean product prices, alongside the daily exchange rate. This results in regular adjustments to fuel prices, both upward and downward.
How Are Fuel Prices Calculated in Turkiye?
Fuel prices in Turkiye are calculated through a multi-step process that involves:
- Customs-Free Refinery Price: Derived from daily CIF Mediterranean product prices and exchange rate changes.
- Additional Taxes: The customs-free refinery price is then subject to various taxes, including ÖTV and EPDK fees.
- Final Pump Price: After taxes, the final price at the pump is determined, which includes a margin for retailers and VAT.
Key Points for Consumers
- Diesel Price Reduction: Motorists will see a 1.50 TL reduction in diesel prices starting from September 11, 2024.
- Stable Gasoline Prices: Gasoline prices remain unchanged for now, with the price per liter staying at 41.55 TL.
- Market Monitoring: Consumers are advised to keep an eye on fuel prices, as changes in Brent crude oil prices and exchange rates can lead to further price fluctuations.
What’s Next?
With the global oil market continuing to fluctuate and economic uncertainty persisting, analysts predict that fuel prices in Turkiye will remain volatile. However, the recent price reduction in diesel is a positive sign for consumers, especially for those who rely on diesel-powered vehicles.
Source: NTV / Prepared by Irem Yildiz