Fuel sliding-scale system ends and new SCT amounts are determined
While SCT rates on gasoline and LPG were reorganized by a Official Gazette decree, it was decided that the tax increase on gasoline would be spread out gradually over three months.
While the sliding-scale system that had been in effect for some time in the fuel market came to an end, new Special Consumption Tax (SCT) amounts for gasoline and LPG entered into force with a decree published in the Official Gazette. In order to ease the pressure of sudden increases in consumer prices, it was decided that the tax increase on gasoline would be reflected gradually over three months.
Sliding-scale system has ended
The sliding-scale system applied in the fuel sector was officially terminated. A presidential decree was published in the Official Gazette, determining new special consumption tax amounts for gasoline and LPG.
Three-month gradual transition for gasoline
A large increase at the pump was expected if there was a direct return to the old tax levels. In order to protect consumers, it was decided that the tax increase on gasoline would be reflected gradually, covering the months of October, November, and December.
According to the planning made, the SCT per liter of gasoline will reach 7.90 TL in October, 11.36 TL in November, and 14.82 TL in December.
Expected pump price in the first stage
Before the regulation, the SCT on gasoline was at approximately 4.44 TL, and if the system were directly lifted, a high cost would have occurred. Thanks to the gradual transition, the increase per liter is limited in October, and an initial rise of approximately 4.15 liras is projected.
Direct tax increase for LPG
The gradual transition policy applied for gasoline was not chosen for LPG. The SCT applied per kilogram was raised from the 9.21 TL level under the sliding scale to its former level of 11.38 TL, and this situation is expected to be reflected in autogas prices as approximately 1.48 TL per liter.
How the sliding-scale system worked
The sliding-scale mechanism was known as a system involving the reduction of the SCT so that increases in foreign exchange rates or oil costs would not be directly reflected to the consumer, and sudden price fluctuations were subsidized by the state.