Petrol prices have fallen in Turkey, leading to lower fuel pump prices. However, no changes have been observed in North Cyprus.
Yeniduzen questioned economists on why fuel prices in North Cyprus haven’t dropped despite a decline in crude and Brent oil prices. Economists pointed to the price stabilisation fund, indicating the government’s need for tax revenue.
Economist Ödül Muhtaroğlu explained to Yeniduzen that the price difference is being transferred to the price stabilisation fund, noting that the fund’s resources are being increased without passing the discount to the public or various sectors.
Economist Ayşem Çelebi noted that fluctuations in wholesale margins, even when distributor and dealer margins decrease during price hikes, might hinder the reduction of fuel prices in North Cyprus.
Economist Mustafa Baturalp highlighted the impact of the country’s tax system, pointing out that the state imposes a tax per litre, preventing price reductions. He described the economy as suffering from thalassaemia, struggling to sustain itself.
Economist Ödül Muhtaroğlu:
“When prices rise, the government immediately reflects it, but they hold back when there’s a decrease.”
Economist Ödül Muhtaroğlu pointed out that while exchange rates are stable and crude and Brent oil prices have fallen, Turkey has reflected this in pump prices. In contrast, North Cyprus has not seen any changes. Muhtaroğlu suggested that the price reduction is likely being diverted to the price stabilisation fund, increasing its resources without passing the benefit to pump prices, the public, or sectors.
He criticised the government for quickly reflecting price increases but hesitating to pass on decreases, using the discount to boost the tax amount in the price stabilisation fund for budgetary purposes.
Economist Ayşem Çelebi:
“Rising wholesale margins prevent a drop in fuel prices in our country.”
Economist Ayşem Çelebi explained that fuel prices in North Cyprus are influenced by exchange rates, taxes, and company profit margins. She stated that this results in fuel prices not decreasing proportionately with the drop in Brent oil prices.
Citing the Energy Market Regulatory Authority’s report, she noted that in Turkey, gasoline and diesel prices are calculated using the formula: product price + wholesale margin + revenue share + distributor and dealer margin total + total tax = final sale price. She believes this formula should apply to North Cyprus as well, but noted that almost none of the components remain constant there.
Çelebi pointed out the constant changes in wholesale, distributor, and dealer margins, and taxes, emphasising that these changes do not follow a standard linear pattern.
She suggested that the increase in wholesale margins, even when distributor and dealer margins decrease, might prevent a reduction in fuel prices.
Economist Mustafa Baturalp:
“An economy struggling like one with thalassaemia.”
Economist Mustafa Baturalp pointed out that while petrol prices have fallen in Turkey, the tax system in North Cyprus prevents similar reductions. He noted that the state imposes a per-litre tax, maintaining high prices.
Baturalp remarked that the economy, described as struggling to sustain itself, is burdened with issues similar to thalassaemia. He stressed the state’s need for tax revenue as a reason for not reducing fuel prices.
