Rising fuel costs persist in Turkey, with diesel reaching over $1.40 per liter in certain urban areas.
In Turkey, fuel prices have been on a steady incline, edging closer to all-time highs. The latest increase is a result of the adjustment in the Special Consumption Tax on July 3.
The pricing of fuel in Turkey is a complex process, primarily based on international product prices and the exchange rate, combined with local taxes and distribution margins. The duty-free refinery price, determined by these inputs, is the starting point. This price is then subject to additional costs such as the Special Consumption Tax, EPDK margin, and Value Added Tax (VAT), leading to the final retail prices.
The exchange rate between the US dollar and Turkish lira (USD/TRY) is another significant factor in determining fuel prices. The prices are calculated based on the CIF Mediterranean product prices, converted into Turkish Lira via the USD/TRY exchange rate. The fuel prices in Turkey are based on the daily prices published in the Italian-Mediterranean market.
Recent fuel price changes are also influenced by global Brent crude oil prices, particularly when Brent crude surpasses key thresholds like $70 per barrel. This fuel price surge in Turkey is expected to continue, with prices in major cities like Istanbul, Ankara, and Izmir approaching ₺55 per liter for gasoline and potentially exceeding ₺57 per liter for diesel.
A previous increase of ₺0.44 occurred just a week ago, and the new fuel price hike will push diesel prices in some cities above ₺57 per liter. With this significant increase of more than ₺1 per liter for both gasoline and diesel, Hakkari, already the most expensive city for fuel in Turkey, will likely see gasoline hit ₺55 and diesel exceed ₺57.
In conclusion, Turkish fuel prices reflect international crude oil and refined product prices (CIF Mediterranean prices), USD/TRY exchange rate fluctuations, domestic taxes (notably Special Consumption Tax), and distribution and retailer margins. This multi-factor pricing mechanism results in regular adjustments aligned with global market movements and domestic fiscal policy.
[1] Source: Turkish Energy Market Regulatory Authority (EMRA) [2] Exchange rate as of early August 2025: ₺15.75 to $1 USD
- Despite the complex pricing mechanism in Turkey, where fuel prices are influenced by international product prices, exchange rates, local taxes, and distribution margins, the latest increase in fuel prices has occurred due to the adjustment in the Special Consumption Tax on July 3.
- Prices for oil and gas in major cities such as Istanbul, Ankara, and Izmir may soon reach ₺55 per liter for gasoline and potentially surpass ₺57 per liter for diesel, following the recent fuel price changes and subsequent increase.
- Given the significant price surge, with an increase of more than ₺1 per liter for both gasoline and diesel, Hakkari, the most expensive city for fuel in Turkey, may soon see gasoline hit ₺55 and diesel exceed ₺57.
- In light of the rising fuel prices and the reliance on oil and gas, the renewable-energy industry in Turkey may experience increased attention and financial investment in order to promote energy diversification and mitigate the impact of global and domestic price fluctuations on the country's economy.
