en.Wedoany.com Reported - On August 13, the Turkish government formally implemented a temporary reduction of the Special Consumption Tax (SCT) on diesel, lowering the SCT on relevant diesel products to zero Turkish lira per liter, effective until August 31. The policy was enacted under Presidential Decree No. 11606, published in the Official Gazette No. 33339 on the same day, and took immediate effect.
The new rate is not a permanent tax exemption. According to the schedule set out in the Presidential Decree, the diesel SCT will be restored in phases starting September 1, with tax amounts of 3 lira, 6 lira, 9 lira, and 12 lira per liter for September, October, November, and December, respectively. As of January 1, 2027, the tax will revert to 13.9006 lira per liter.
This adjustment applies to diesel products classified under Turkish Customs Tariff codes 2710.19.43.00.11 and 2710.20.11.00.11. Turkey has also removed diesel from the sliding tax adjustment mechanism for fuel prices, meaning the SCT will no longer automatically absorb part of the price increases driven by international oil prices and exchange rate fluctuations.
Gasoline and liquefied petroleum gas (LPG) will continue to be subject to the sliding tax adjustment mechanism for now. This mechanism will expire on September 30 and cease to apply as of October 1. As a result, Turkey's refined fuel tax system will gradually shift from floating adjustments to predetermined fixed tax rates.
Turkey's Ministry of Treasury and Finance stated that this adjustment is primarily aimed at alleviating the cost pressure on consumers, transport companies, and industrial producers caused by rising international diesel prices, while also slowing the transmission of fuel price volatility into inflation expectations and commodity pricing.
The tax reduction has already been reflected in some end-market prices. On August 13, the average retail price of diesel at some Turkish gas stations fell from approximately 80.05 lira per liter to 70.80 lira per liter, a decrease of more than 9 lira, representing a drop of over 10%. Changes in diesel prices will directly affect the costs of road freight, agricultural machinery, public transportation, mining operations, and industrial logistics in Turkey.
Since the diesel tax will increase by 3 lira per month from September to December, the current price reduction effect is clearly temporary. Future end-market prices will also be jointly influenced by international diesel quotations, crude oil costs, the lira exchange rate, and the pace of tax restoration.
