Turkey Weighs Return of Fuel Tax Buffer as Oil Jumps on Iran War

Article content(Bloomberg) — Turkey is assessing whether to revive a fuel tax mechanism aimed at cushioning consumers from rising oil prices as war in Iran drives up crude, according to people familiar with the matter. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Treasury and Finance Ministry is assessing potential revenue losses and the budget impact of reviving the so-called escalator system, the people said, speaking on condition of anonymity as deliberations continue. A decision is expected later this week, they said. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe ministry declined to comment.Article contentArticle contentGlobal benchmark Brent rose above $80 a barrel after spiking about 7% on Monday. The gains followed strikes by the US and Israel on Iran, which prompted retaliatory attacks across the region and fueled concerns about supply disruptions.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“We are working to limit the inflationary impact of rising oil prices caused by geopolitical developments,” Treasury and Finance Minister Mehmet Simsek said in a post on X Tuesday.Article contentIn Turkey, pump prices are calculated by adding a special consumption tax, value-added tax and distribution margins to the refinery price. As oil prices rise, retail prices automatically increase.Article contentUnder the escalator system, first introduced in 2018 after a currency crisis, the government cuts the special consumption tax to cushion consumers from price spikes, sacrificing tax revenue in the process. The mechanism was scrapped in 2022.Article contentRising energy costs risk adding to Turkey’s inflation pressures as the country relies heavily on energy imports. Annual inflation in February climbed to 31.5% from 30.7% the prior month. Analysts now expect monthly inflation at around 2.5% in March.Article content—With assistance from Patrick Sykes.Article contentTrending Shocks can force Bank of Canada to hike rates even when economy weak, says deputy Economy PDAC 2026: Hodgson says Canada's mining sector is at a 'hinge moment' while announcing new critical minerals projects Mining From defence to airlines: How stocks are reacting to Iran attacks Investor As East-West pipeline divide persists, Atlantic Canada's energy isolation is only getting worse Oil & Gas Garry Marr: Bad news, Gen Z — The Freedom 55 guy is still working in his 60s and you will be, too Retirement Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Shocks can force Bank of Canada to hike rates even when economy weak, says deputy Economy PDAC 2026: Hodgson says Canada's mining sector is at a 'hinge moment' while announcing new critical minerals projects Mining From defence to airlines: How stocks are reacting to Iran attacks Investor As East-West pipeline divide persists, Atlantic Canada's energy isolation is only getting worse Oil & Gas Garry Marr: Bad news, Gen Z — The Freedom 55 guy is still working in his 60s and you will be, too Retirement