Sliding scale fuel pricing system comes to an end
The sliding scale system implemented to ease pressure from oil prices was abolished by a decision in the Official Gazette, ushering in a new era in taxes.
While the sliding scale application introduced against the price pressure created in the oil market by the war of the US and Israel with Iran ended with a Presidential Decree published in the Official Gazette, tax increases on fuel and the schedule for the gradual transition also became clear.
Termination of the Application
With the Presidential Decree published in the Official Gazette, the sliding scale system came to an end as of yesterday. The return of the Special Consumption Tax reduced on gasoline to its former level was spread over the months of October, November, and December.
It was reported that while the tax on LPG was directly raised to its previous level, the gradual transition process initiated in August for diesel fuel will continue.
Initial Purpose of the System
With the sliding scale application launched in March 2026, efforts were made to reduce the reflection of fuel costs rising due to the impact of the war onto the consumer, and a portion of the price increases was covered by the SCT collected by the state.
At the beginning of the application, up to 75 percent of the increases were balanced with an SCT discount, and this rate was later reduced to 25 percent for the August and September period.
Gradual Tax Increase on Gasoline
The SCT per liter on gasoline will be applied as 7.90 liras in October, 11.36 liras in November, and 14.8277 liras in December, reaching its former level in December.
In the event of a single-time increase in SCT, an increase of approximately 12.47 liras at the pump is expected due to the VAT effect, whereas with the gradual transition, the effect of the regulation in October will be approximately 4.15 liras.
LPG and Diesel Regulations
A transition schedule similar to that of gasoline will not be applied to LPG, and the SCT, which was 9.2190 liras per kilogram, was raised to the level of 11.3830 liras.
While this change is expected to be reflected as a price hike of approximately 1.48 liras per liter of autogas, the gradual increase in diesel is projected to lead to a price rise of approximately 3.60 liras per liter.
Budgetary Impact and Markets
The state forgone approximately 480–500 billion liras in SCT and VAT revenue this year due to the sliding scale application, and a portion of the cost increases was met through this way.
While the expected hike amounts in the new period represent only the impact of tax regulations, movements in oil prices and exchange rates will continue to affect the final price.