Oil tax lion’s share of government income

ANKARA - Anadolu Agency

Taxes provided by the oil sector take up a considerable share in the government’s indirect tax revenues in Turkey, particularly after the recent increase in fuel prices, which raised the price of 98 octane fuel to over 5 Turkish Liras a liter.

The trading volume of the oil market in Turkey, including liquid petroleum gas (LPG), increased by 10.8 percent and reached $39.3 billion in 2012 compared to 2011, according to the data revealed by the Turkish Petroleum Industry Association (PETDER) yesterday.

The total consumption of automotive fuels including LPG, gas, and diesel rose by 4.1 percent in 2012 in comparison with the previous year, reaching 25.8 million cubic meters.

The government carried out another increase in fuel prices in Turkey for the second time in just eight days. Prior to the rise, the price of 98 octane fuel was about 4.93 liras per liter on July 17. A liter of 95 octane fuel, which used to be sold at around 4.83 liras, will jump up to 4.91 liras as well.

Even before the hikes, Turkey was top in the most expensive fuel prices due to high taxes in the world, ahead of Norway. The price of gas including tax increased by 7.4 percent, diesel 8 percent and LPG 8.2 percent in 2012, PETDER data shows.