With the decision published in the Official Gazette yesterday, the Ministry of Treasury and Industry reset the SCT on diesel until the end of August! The decision was taken to contribute to the disinflation process!
According to the decision, SCT will be applied as 0 TL per liter until August 31, 3 TL per liter in September and 6 TL in October.
Diesel, which was once preferred by car owners who wanted to buy a car because it was a cheap and efficient fuel type, is now more expensive than gasoline! The main reason for this is the ongoing conflicts between Russia and Ukraine. More than 35 percent of Russia’s refining capacity was disabled due to Ukraine’s attacks on Russia’s oil production facilities. Following this development, Russia banned diesel exports. Thus, when the supply of diesel decreased, its prices increased by 15 percent compared to gasoline.
So why is diesel so important to economies? Diesel is not only used in passenger vehicles. It is known for being cheap and efficient to use. Diesel consumption is 21 percent less than gasoline in 100 km.
Such a difference has expanded the use of diesel from passenger cars to aircraft, industry and logistics. Most of the tractors used in the agricultural sector use diesel fuel, the engines of trucks and trucks also use diesel fuel, and ships and cargo vehicles also use diesel fuel.
Therefore, the biggest problem caused by the increase in diesel prices is its reflection on inflation.
According to the analyzes of the Central Bank of the Republic of Turkey (CBRT), a 10 percent increase in Brent oil prices increases consumer inflation by approximately 1 point at the end of 12 months with direct and indirect effects.
The Ministry of Treasury and Finance intervened in the price of the fuel type most used in logistics, agriculture and industry in order to prevent the disinflation process from being interrupted. The majority of tractors, especially those used extensively by farmers, run on diesel fuel.
The price of diesel used in vehicles in Türkiye increased by 14.3 percent in July.
The decision of the Ministry of Treasury and Finance came before the Inflation Report to be announced by the CBRT.
