Published On: Sat, Apr 5th, 2014

Main opposition says gasoline prices have increased 210 pct during AKP rule

OIL PRICESLofty tax burdens have caused the price of gasoline to skyrocket over 210 percent during the 11-year Justice and Development (AKP) rule, the main opposition party has claimed.

“Turkish people are paying many times more than other countries for fuel because of steep tax rates,” Republican People’s Party (CHP) deputy Umut Oran said in a written statement released March 29.

He claimed the price of gasoline had risen by 210 percent during the AKP’s rule, adding that the net surge was at 129 percent when the 35 percent rise in the U.S. dollar/Turkish Lira ratio is excluded.

The main reason behind the “steep” upsurge in fuel prices is indirect taxes, such as the Special Consumption Tax (ÖTV) and Value Added Tax (KDV), which raise the ex-refinery price three-fold, Oran said. “Only one-third of the money citizens pay for one liter of gasoline is the actual price.”

Oran also compared the fuel price in Turkey with Norway to highlight his case. He said the dollar-based gasoline price was almost equal to the price in Norway, where the national income per capita is above $50,000.

He argued the price of a tank of gasoline was around 2 percent of minimum wage in Norway, while the ratio is 4 percent in Turkey.

Oran also said taxes, particularly ones introduced after 2005, when the free price system was established, had played a great role in covering the budget deficit.

He said a total of 250 billion liras in indirect tax, 131 billion liras of which came from the ÖTV and 69 billion from the KDV, was collected between 2005 and 2012, according to the Energy Market Regulatory Authority (EPDK).


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