05.03.2026 00:42
After Iran's closure of the vital Strait of Hormuz for international oil trade, Turkey took a critical measure to prevent a significant increase in fuel prices. The country has switched to a sliding scale system for fuel prices. According to this system, in the event of a price increase for fuel, 75% of the increase will be offset by a reduction in the excise tax. If a reduction is made, the excise tax will be increased by 75%.
Iran responded not only with retaliatory operations against the attacks of the USA and Israel but also by playing its biggest economic card. Iran closed the Strait of Hormuz, which is vital for international oil transportation.
THE ERA OF ESCALATING FUEL PRICES WITH THE ESCALATION MOBILE SYSTEM
Following the closure of the Strait of Hormuz, there were significant concerns about a sharp increase in international oil and fuel prices. Turkey made a critical decision to minimize the impact of the potential price increase on its citizens. The country transitioned to the escalation mobile system for fuel prices.
75% DISCOUNT OR INCREASE ON SPECIAL CONSUMPTION TAX
According to the decision published in the Official Gazette, in the event of price increases in fuel due to rising international oil prices and exchange rates, a discount of 75% of the increase will be applied to the Special Consumption Tax (SCT). In case of a decrease, a discount equivalent to 75% of the reduction will be applied.
WHAT IS THE ESCALATION MOBILE SYSTEM?
The escalation mobile system for fuel prices is a type of tax balancing mechanism implemented to prevent direct reflection of increases in oil prices or exchange rates on consumers. In this system, when the cost of fuel increases, the government aims to keep the sale price stable by waiving the amount of Special Consumption Tax (SCT) corresponding to that increase; when costs decrease, the SCT amount is brought back to its previous level. Its main purpose is to reduce the pressure of sudden fluctuations in energy costs on inflation and to protect the purchasing power of citizens.