Turkish petrol prices will rise 4 percent – report

Petrol prices in Turkey’s major cities will rise as much as 4 percent, according to a report in Dünya newspaper.

The price of a litre of fuel in Istanbul will increase to an average of 7.08 liras ($1.25) per litre, up from 6.81 liras per litre, Dünya said, citing an organisation representing gas stations across the country.

Turkish petrol prices have risen sharply since last summer after a currency crisis led to a slump in the value of the lira against the dollar and euro. The lira lost 28 percent of its value last year and has continued to decline in 2019. Turkey imports almost all the oil it consumes.

The 4 percent increase in Istanbul will be accompanied by a 3.9 percent hike in Ankara and Izmir, where prices will rise to an average 7.16 liras and 7.15 liras respectively.

Price increases may turn out to be less in some areas of the country due to competition between firms, Dünya said.

Turkey’s government has encouraged retailers to keep a lid on prices this year as it fought to keep control of major cities in local elections. The ruling Justice and Development Party (AKP) lost Ankara and failed to win the mayoral seat for Izmir on March 31. The main opposition party won a rerun of an election for Istanbul on June 23.

Consumer price inflation in Turkey was 18.7 percent in May. 

Government-run bodies have raised prices for some commodities since the Istanbul vote, including for tea and sugar, which increased 15 percent and 16 percent, respectively.