TODAY’S – Tax burden on gasoline prices nears 60 pct

Tax burden on gasoline prices nears 60 pctThe tax burden per liter of gasoline was 58.19 percent in July in Turkey, which has Europeand#39s second-highest gasoline price, official figures have shown.

The price of 95-octane unleaded gasoline reached TL 507 per liter in July, and consumers had to pay TL 295 of this price in taxes, data from the Energy Market Regulatory Agency (EPDK) revealed on Thursday. The average tax burden on gasoline in the European Union is 54 percent, the EPDK noted.

The EPDK said Turkey has the second-most expensive gasoline price in Europe after Denmark, with the price of gasoline, excluding taxes, having reached TL 212 in June. Data from the EPDK that was published on Thursday showed that the price of gasoline before taxes in Turkey is above the EU average of TL 197.

The EPDK said the price of diesel fuel, excluding tax, was TL 215, also above the EU average of TL 201 for diesel.Denmark led markets in Europe with the highest pre-tax gasoline price at TL 218 per liter, according to the EPDK, while Greece led in diesel prices at TL 222.

Turkey is heavily dependent on foreign oil reserves the country imports 92 percent of its oil demand from abroad, while this share is 98 percent in natural gas. The major burden on Turkish gasoline prices comes from indirect taxes, while the rest is processing, transportation and distribution shares.

Before gasoline reaches end users, it has to go through certain procedures. Imported crude oil first goes to refineries and is then transported by fuel distributors to pump stations, which sell the gasoline with taxes added.

At each step, the price of crude oil increases around 2 percent is added during the refining process 8 percent goes to distributors and gas stations, while 58.19 percent is private (TV) and value-added (K) taxes.

The remainder is the original price of imported crude oil.In international markets, the price of Brent Crude oil fell toward $101 a barrel on Thursday, just above a 14-month low.

Government officials have blamed andquotexternal developmentsandrdquo for the countryand#39s high gasoline prices. The price of gasoline is defined according to an automated pricing mechanism in which distributors buy petroleum with US dollars and sell it in Turkish liras.

SOURCE: Today’s Zaman