Fuel, Cigarettes and Alcohol: How Much Did Prices Increase?

Excise Tax (ÖTV) Hikes Remain Below Inflation This Time

For the July–December period of this year, the Special Consumption Tax (ÖTV) update that should have been made in line with the Domestic Producer Price Index (Yİ-ÜFE) and was expected to exceed 10 percent was instead limited to lower rates. Accordingly, ÖTV increases were set at 6.95 percent for fuel products and 7.95 percent for cigarettes and alcoholic beverages.

With a Presidential Decision published in the Official Gazette, the fixed and minimum fixed excise tax amounts applied to fuel, cigarettes, and alcoholic beverages were revised.

Under the ÖTV Law, excise tax amounts on fuel, cigarettes, and alcoholic beverages are updated every January and July in line with the change in the Domestic Producer Price Index (Yİ-ÜFE) announced by the Turkish Statistical Institute (TÜİK) over the previous six months.

ÖTV increases capped for fuel, cigarettes and alcohol

According to information obtained by an Anadolu Agency (AA) correspondent from the Ministry of Treasury and Finance, instead of the ÖTV update based on Yİ-ÜFE for the July–December 2025 period—which was expected to exceed 10 percent—the decision introduced a 6.95 percent increase for fuel and a 7.95 percent increase for cigarettes and alcoholic beverages, thereby limiting the impact on consumer prices.

In addition, within the scope of the 2026 Central Government Budget Law, ÖTV increases for these products were calculated based on a rate of 7.84 percent. This approach was assessed as being compatible with both budget targets and inflation targets.

Before the regulation, ÖTV amounts stood at 13.86 lira for gasoline, 12.99 lira for diesel, 10.64 lira for LPG, 55.5 lira per pack of cigarettes, 11.57 lira for beer, 56.87 lira for wine, 17.78 lira per liter per alcohol degree for certain high-alcohol beverages, and 15.8 lira per liter per alcohol degree for rakı.

New ÖTV amounts announced

Under the Presidential Decision, ÖTV was set at 14.82 lira for gasoline, 13.9 lira for diesel, 11.38 lira for LPG, 56.78 lira per pack of cigarettes, 12.49 lira for beer, 61.39 lira for wine, 19.19 lira per liter per alcohol degree for certain high-alcohol beverages, and 17.06 lira per liter per alcohol degree for rakı.

With this decision, strong support was provided to the coordination of fiscal and monetary policy, contributing positively to the disinflation process. The move was also seen as a concrete step toward keeping tax increases below the inflation rate projected in the Medium-Term Program.

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