LPG Price Increases Significantly in Turkey Following New Tax Hike
Turkey has introduced another significant price increase for liquefied petroleum gas (LPG), particularly autogas, which comes into effect immediately as of today, 3 October 2026.
The latest adjustment involves a rise of 4.75 Turkish Lira per litre for autogas.
This price hike follows shortly after a previous increase of 1.48 Turkish Lira per litre of LPG, which was implemented as a result of an increase in the Special Consumption Tax (ÖTV). The previous price adjustment, which was directly linked to the ÖTV, took place after the so-called " Eşel Mobil Sistemi" (the equalisation system) was discontinued on 1 October.
The ÖTV is a tax imposed by the state on certain goods and services, and an increase in this levy leads directly to higher consumer prices.
The termination of the equalisation system marks a shift in the authorities' policy regarding fuel price stabilisation, where market prices and taxes are now increasingly being passed directly on to consumers. The " Eşel Mobil Sistemi" was an important regulatory tool in Turkey, designed to absorb and smooth out fluctuations in fuel prices to shield consumers from sudden spikes.
The system functioned by having the state adjust tax levels to stabilise the price at the pump.
With the system' s conclusion, this buffer has been removed, meaning that global price changes and national tax adjustments now have an immediate and full effect on fuel costs for the Turkish population. Combined, the two price increases represent a significant total rise of 6.23 Turkish Lira per litre of autogas.
This aggregate increase will be felt heavily in household budgets, especially for those who rely on LPG for heating or as fuel for their vehicles.
Businesses within the transport, logistics, taxi, and public transport sectors will also experience substantially higher operating costs, which may lead to further price increases for goods and services across the economy. Rising fuel prices are a central driver of inflation in Turkey, given the country' s reliance on imported energy and the significance of transport costs in the supply chain.
The latest increase in the price of LPG will therefore place further pressure on general price growth.
This reduces the purchasing power of consumers and may lead the central bank to consider measures to dampen inflation, which in turn could impact interest rate levels and overall economic activity. For tourists and foreign residents in Turkey, these changes also translate into higher expenses.
Those hiring cars or using local transport services will notice that the costs of travelling and exploring the country are rising.
In an economy where the balance between state revenues and the control of living costs is critical, these fuel price increases represent a significant challenge for both the authorities and the general public.
Source: Haberglobal
