Azernews.Az

by Alimat Aliyeva

Türkiye has reduced gasoline and diesel prices starting from midnight on Tuesday, following a slight decline in global oil prices amid expectations of a potential agreement between the United States and Iran, AzerNEWS reports, citing foreign media.

Gasoline prices were cut by 1.38 Turkish lira (approximately $0.030) per liter, while diesel prices decreased by 1.81 lira per liter, according to the Turkish news portal Haberler.com.

Brent crude futures, the global oil benchmark, fell to around $94.40 per barrel, marking a two-week low as markets continued to assess uncertainty surrounding U.S.–Iran negotiations and broader geopolitical tensions in the Middle East.

Türkiye introduced a sliding-scale tax mechanism in early March to help soften the impact of volatile fuel prices caused by geopolitical shocks following the escalation of conflict in the region earlier this year.

While the temporary measure has provided some relief for consumers, high energy costs continue to drive inflation in a country that has been struggling with elevated price levels for nearly a decade.

Annual inflation currently remains above 32%, and in May the central bank was forced to revise its year-end forecasts upward due to persistent geopolitical risks and currency pressure.

Fuel prices in Türkiye have fluctuated significantly since the beginning of the Middle East crisis, closely tracking global oil market movements. Despite the recent reductions, gasoline and diesel prices remain substantially higher compared to pre-crisis levels.

Interestingly, economists note that Türkiye’s fuel pricing system is now one of the most sensitive in emerging markets, as even small changes in Brent crude prices can quickly pass through to domestic pump prices. Some analysts also warn that if geopolitical tensions escalate again, fuel subsidies or tax adjustments may return, making energy pricing one of the country’s key economic policy challenges in 2026.