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Diesel fuel prices in Turkey climbing again

The diesel fuel (Eco Force) price at Opet stations on the European side of Istanbul climbed to Turkish lira (TRY) 25.98 ($1.43) per litre on August 24, up 258% y/y, from TRY 22.36 on August 9, according to data provided by Opet (chart).

In the same period, the gasoline price was relatively stable. It stood at TRY 21.15 ($1.16) on August 24, up 173% y/y, compared to TRY 20.04 on August 9.

As of August 26, the diesel price will increase by an additional TRY 0.87, media reports suggested on August 25.

The record diesel price of TRY 29.94 was registered between June 16 and June 27. The record gasoline price of TRY 28.46 was seen on June 13. Diesel's annual price increase topped 316% and gasoline's exceeded 269% at the price peaks.

Gasoline prices in Turkey are automatically updated based on a formula. The variables are the Brent oil price, crack margins (CIF Med), the USD/TRY rate and the special consumption tax (SCT).

As of August 25, Brent was up 43% y/y to $101 (down from the $120s seen in June) while the USD/TRY pair was up 116% y/y to 18.17.

The diesel crack margin fell to $38 per barrel in July from $54 in June but remained substantially higher than the $12 registered in February. The gasoline margin, meanwhile, fell to $26 in July from $44 in June but remained distinctly higher than the $13 seen in March.

As of August 25, the diesel differential stood at $57 and the gasoline differential stood at $17.

The average gasoline price in the US was up 23% y/y to $3.88 per gallon ($1.02 per litre). A record $5.02 was registered on June 14.

According to data from the Petroleum Industry Foundation of Turkey (PETDER), gasoline sales in Turkey declined by 3% to 3mn cubic metres (m3) in 2020, while diesel sales were flat at 30mn m3 and autogas (automotive LPG) sales were down 9% y/y to 3mn tonnes.

In 2021, gasoline sales were up 31% y/y to 4mn m3 (3mn tonnes) while diesel sales were up 11% y/y to 32mn m3 and autogas was up 7% y/y to 3.1mn m3.