Significant Increases Expected for Fuel Prices Amidst New Special Consumption Tax Adjustments
As July approaches, discussions around Special Consumption Tax (SCT) hikes are intensifying. On Wednesday, July 3, the Domestic Producer Price Index (YI-IFE) will be announced. Following this announcement by the Turkish Statistical Institute (TUIK), substantial increases in SCT rates for various products, including fuels, are anticipated. Gasoline, diesel, and LPG prices are all expected to see significant hikes.
The first hike, a 38% increase in electricity prices, has already taken effect today. Following the YI-UFE announcement on July 3, automatic tax hikes of around 20% will be applied to SCT rates for fuels, alcohol, and tobacco products.
If YI-UFE increases by 20%, SCT rates will rise to ₺11.34 for gasoline and ₺10.63 for diesel. Including VAT on these new SCT rates, the tax burden will reach ₺2.27 for gasoline and ₺2.13 for diesel. Consequently, the price per liter of gasoline will increase from ₺42.40 to ₺44.67, and diesel will rise from ₺42.51 to ₺44.64.
LPG prices are also set to rise. According to Foreks Haber, a price increase of ₺1.80 is expected for LPG. Sources indicate that while no changes are anticipated in fuel prices based on Platts values, TUIK data will trigger SCT-related price hikes for both fuels and autogas (LPG) starting from July 3, 2024.
Source: Dunya.com / Prepared by Irem Yildiz