Economy in Turkey: Public Prices Generous with Increases!

The increase in public service (and products) prices has far outpaced expected inflation, surpassing it by four times in some areas. Despite debates surrounding inflation data released towards the end of 2024, the Turkish Statistical Institute (TÜİK) announced an annual inflation rate of 44.38%.

While a disinflation program was introduced, which suggested that price hikes on managed and directed goods would be more careful, many public service prices have risen significantly above the 17.5% inflation forecast in the Medium-Term Program (OVP) and the Central Bank’s 21% forecast for 2025.

The special consumption tax (ÖTV) on alcoholic beverages and tobacco products is automatically increased every six months by the Producer Price Index (Yİ-ÜFE). Since January 2024, the ÖTV on rakı has been increased by 61.44%, and the ÖTV on cigarettes has been raised by 74.58%, which is 20.8 percentage points higher than last year’s inflation.

Before the inflation figures for December were released, the ÖTV on fuel was increased by 6%. Despite this, the automatic adjustment based on the 7.55% inflation (YİÜFE) in the second half of the year was not applied. Even though the ÖTV on fuel products was increased by 26.75% over the year, the price of gasoline increased by 31.77%, and diesel prices rose by 23.04%. Fuel prices frequently change, typically in line with fluctuations in oil prices, with increases predominating.

Toll and Highway Prices Exceed Inflation

While inflation reached 15.75% in the second half of the year, toll fees on highways saw increases ranging from 43.75% to 45%. Bridge tolls, on the other hand, increased by four to five times the inflation rate. For example, the toll for crossing the 15 July Martyrs Bridge and the Fatih Sultan Mehmet Bridge increased by 213.3% on an annual basis. The Osmangazi Bridge toll rose by 174.14%, the 1915 Çanakkale Bridge toll increased by 169.49%, and the Yavuz Sultan Selim Bridge toll went up by 128.57%. The latest price hikes also raised high-speed train (YHT) ticket prices between Ankara and Istanbul by 81.4%.

Increase in Taxes, Fees, and Fines by 43.93%

As of 2025, various public financial obligations, including traffic fines, driver’s license and passport fees, and the Motor Vehicle Tax, have been increased by the Revaluation Rate, which is set at 43.93%.