According to the compilation of the calculations of the Central Bank and the Ministry of Treasury and Finance experts, the effect of the change in fuel SCT on inflation was determined.
The fixed tax amount in fuel products is re-determined in the Domestic Producer Price Index (Yi-PPI) announced by the TurkStat in January and July in accordance with the SCT Law.
The amounts in question were re -identified on 3 July.
Accordingly, the regulation made with the increase of 15.71 percent of the Yi-PPI during the January-June period is expected to affect fuel pump prices an average of 4.2 percent. This increase is expected to have a direct impact on consumer inflation in July and remain around 0.14 points.
While the main determinant of fuel prices is global oil prices, market expectations are that the disinflation process will continue in July.
