Sliding Scale Fuel Tax System Ends and Massive Price Hike Coming for Gasoline
With the removal of the temporary tax balancing mechanism, record-level increases in fuel prices are expected.
As the sliding scale fuel tax system implemented due to the US-Iran war and the Strait of Hormuz crisis is set to be abolished on October 1, 2026, a substantial hike including tax increases is planned to be reflected in fuel prices.
Reason for the Termination of the Application
The sliding scale fuel tax system, enacted by the Presidential Decree dated March 4, 2026, as a result of geopolitical risks originating in Western Asia, the Strait of Hormuz crisis, and sharp rises in oil prices, is coming to an end.
This temporary tax balancing mechanism, where the Special Consumption Tax (SCT) was adjusted to prevent increases in fuel prices from being passed on to consumers, will be abolished on October 1, 2026.
SCT and VAT Increase Details
According to information shared by economic journalist Olcay Aydilek, with the repeal of the said application, the SCT amount per liter, which is currently 4.43 Turkish Liras, will rise to the level of 14.83 Turkish Liras.
It is on the agenda that gasoline will receive a total price hike of 12.48 Turkish Liras next week, consisting of a 10.40 Turkish Lira SCT and a 2.08 Turkish Lira VAT.
Expected Pump Prices
In the new scenario awaiting drivers following the tax increases and price hikes, the liter price of gasoline is projected to exceed the 90 Turkish Lira threshold.