HOW ARE FUEL PRICES FORMED?
PETROLEUM MARKET LAW
The Free Pricing System was adopted on January 1, 2005 as stipulated by the Petroleum Market Law.
According to this system, fuel distribution companies in the sector are free to set their wholesale price, while dealers are free to apply the pump price ceilings recommended by the distribution companies or to set their own pump prices to respond to the competition in their area.
In Turkey, retail prices are formed based on the competition.
Duty-free refinery price + Special Consumption Tax (SCT) + Energy Market Regulatory Authority (EMRA) Margin = Refinery sales price (excluding VAT)
Duty-free refinery price signifies CIF Mediterranean product prices published in the Mediterranean-Italian market.
This is the market followed by Turkey. Daily CIF Med product prices and the daily USD exchange rate since the last price change are monitored to set the duty-free refinery sales price ceiling at a certain price difference.
Special consumption tax (SCT): A tax rate determined separately for each product by the government.
The following are the SCT per product (TL/M3).
|95 Unleaded Gasoline
|High - Sulphur Fuel Oil
EMRA margin: Share in revenue collected by the Energy Market Regulatory Authority. This margin is 25,29 TL/TON for white products and 26,87 TL/TON for black products.
For more information visit www.epdk.org.tr.
The sales prices for all depots by a distribution company are set by adding the distribution company margin and product service price to the procurement price. This margin is the amount set aside by the distribution company for product costs, new station investments, station renovation investments, marketing and various activities.
The distribution company determines a recommended pump price by adding various costs of the dealer and the transportation costs for the specific location to the wholesale price and informs the dealers.
The dealer is free to apply the recommended pump price or to set its pump price based on the competition in its area.
WHAT CONSUMERS NEED TO KNOW
The new law requires all stations to update their price boards to reflect the most recent price change and ensure that there is no difference between the pump price and the price posted on the price board. Therefore we request all customers to pay due attention to this requirement and inform customer services by calling 444 44 TP when a TP station does not show the updated prices on its price board or if there is a discrepancy between the pump price and the price on the price board.