Changes in Fuel Prices: Decision to End the Escalation Mobile System

The decision to gradually end the escalation mobile system, which is used to determine the Special Consumption Tax (SCT) amounts of fuel products, has been made with a presidential decree. This system was intended to prevent the inflationary effects of periodic price increases in fuel prices by offsetting price increases due to international oil prices and exchange rates through the Special Consumption Tax. According to the information obtained from the Ministry of Treasury and Finance, the SCT amounts of fuel and non-fuel petroleum products, alcoholic beverages, and tobacco products are updated every six months in January and July based on the domestic producer price index (D-PPI) announced by TÜİK. The goal is to phase out the system over a period of three months. In the event of an increase in domestic refinery prices, 50% of the increase will be offset by a decrease in SCT amounts until July 31, and 25% until September 30. In the event of a decrease in domestic refinery prices, the SCT amounts will be increased by the full amount of the decrease. Thus, the escalation mobile system, which was implemented with a presidential decree on March 4, 2026, and has made significant contributions to the fight against devaluation over the past four months, is expected to be phased out within three months without having a negative impact on inflation.