Turkey is evaluating whether to reintroduce a fuel tax adjustment system designed to shield consumers from rising energy costs as crude prices climb amid the war involving Iran, Bloomberg reported, citing people familiar with the matter.
According to the report, the Treasury and Finance Ministry is examining the potential fiscal impact of reinstating the so-called escalator system, including possible revenue losses and broader implications for the state budget. The officials spoke on condition of anonymity because discussions are ongoing.
A decision on whether to revive the system is expected later this week, the report said.
Turkey, which relies heavily on energy imports, is particularly sensitive to swings in global oil prices, which can feed into inflation and increase external imbalances.