A Presidential Decision published in the Official Gazette introduced a new special consumption tax arrangement for diesel and changed the scope of the sliding-scale mechanism.
Under the decision, the special consumption tax on diesel will be set at zero for the remainder of August. The amount will then increase by 3 lira each month through the end of the year.
Diesel tax to rise gradually
Under the new schedule, the special consumption tax on diesel will be 3 lira in September, 6 lira in October, 9 lira in November and 12 lira in December.
From January 1, 2027, the special consumption tax on diesel will be applied at 13.9006 lira. This is intended to bring the amount back to its level before the sliding-scale mechanism was introduced.
Sliding-scale mechanism removed for diesel
With the special consumption tax amounts redefined, the sliding-scale system has been abolished for diesel products.
No changes were made to the existing sliding-scale mechanism for gasoline and LPG products. For these products, if domestic refinery prices rise, 25 percent of the increase will be offset through the special consumption tax until September 30.
If refinery prices fall, the special consumption tax will continue to rise by the amount of the discount. The sliding-scale system will be completely removed as of October 1, even if previous special consumption tax levels have not been reached, and pricing based on the free market will begin.
Regulation aims to limit price pressures
The regulation aims to lower diesel prices, reduce price pressures on consumers, transport operators and industrialists, and support efforts to combat inflation.
The existing mechanism will remain in place for gasoline and LPG, while a gradual and controlled special consumption tax approach will be applied to diesel. Because diesel affects the economy as a whole, particularly food, transportation and industry, the regulation aims to limit the impact of price increases on costs.
The measure is intended to reduce cost pressures on economic activity and competitiveness and prevent excessive fluctuations in diesel prices from disrupting inflation expectations and pricing behavior. While maintaining budgetary discipline and fiscal sustainability, the regulation aims to safeguard efforts to combat inflation, the competitiveness of the real sector and public finance balances together.
