Gasoline and Diesel Prices See Reduction Amid Declining Brent Crude Oil Prices, While LPG Prices Rise Slightly
Fuel Prices Drop for Gasoline and Diesel, LPG Sees a Small Increase
As of August 23, 2024, Turkiye’s fuel market has seen notable price adjustments, reflecting the ongoing fluctuations in global oil prices. Brent crude oil continues its downward trend, trading around $77 per barrel this morning, leading to expected reductions in gasoline and diesel prices. However, LPG prices have seen a modest increase, adding complexity to the fuel pricing landscape.
Current Fuel Prices:
- Gasoline:
The price of gasoline has decreased by ₺1.45 per liter. This adjustment was reflected in sales starting at midnight. - Diesel:
Diesel prices have also seen a reduction, with a ₺0.78 per liter drop. - LPG:
Contrary to gasoline and diesel, LPG prices have risen by ₺0.42 per liter.
These changes in fuel prices are influenced by the falling prices of Brent crude oil, which is a key determinant in the pricing of refined fuel products in Turkiye.
Turkiye’s Regional Fuel Prices:
In Istanbul, the current prices are as follows:
- Gasoline: ₺43.24 per liter
- Diesel: ₺43.94 per liter
These prices vary slightly across regions but remain closely aligned with global oil price trends.
How Are Fuel Prices Calculated in Turkiye?
Fuel prices in Turkiye are determined through a detailed calculation process that takes into account several factors:
- Customs-Free Refinery Price:
This is the base price for fuel and is calculated using daily CIF Mediterranean product prices from the Mediterranean-Italian market, along with the daily USD exchange rate. - Taxes:
The Customs-Free Refinery Price is then increased by adding the Special Consumption Tax (ÖTV) and the Energy Market Regulatory Authority (EPDK) share, excluding VAT. - Refinery Sale Price:
The final sale price at the refinery is determined after these additions, which is then passed on to consumers at the pump.
Factors Influencing Price Adjustments:
- Global Oil Prices:
The continuous drop in Brent crude oil prices has been the primary driver for the recent reduction in gasoline and diesel prices. - Exchange Rate Movements:
The value of the Turkish lira against the US dollar also plays a significant role in determining fuel prices, as oil is traded globally in USD.
Fuel prices in Turkiye are expected to remain volatile, closely tracking the movements in global oil prices and exchange rates. Consumers should stay informed about potential further adjustments, especially with global market conditions and domestic economic policies continuing to influence price levels.
Source: NTV / Prepared by Irem Yildiz