Federation of Consumers Associations (TÜDEF) President Ali Çetin described the introduction of a price ceiling system before raising taxes as a "theater-in-the-round." "Their aim is not really to bring down prices but to fool consumers into thinking that prices are falling," he claimed.
In a written statement issued on Thursday, Çetin noted that the rate of the most recent price hike was 9.2 percent, considering the "strange implementation of applying value-added tax [VAT] on top of the special consumption tax [ÖTV]." This increase will not be confined solely to the fuel market, he emphasized, adding that the increase will trigger increases in the prices of many other goods and services, from transportation to furniture.
"This price hike means at least a 10 percent increase in the prices of a variety of goods, from needles to thread, and it will basically hurt households, which will now strive for their lives rather than struggling for their livelihoods," he said.
The fuel distribution companies had to raise their prices on Thursday after the government announced a special consumption tax increase of kr 20 for gasoline, kr 15 for diesel and kr 10 for liquefied petroleum gas (LPG) a day earlier.
The Energy Market Regulatory Authority (EPDK) had enacted price ceilings for the fuel market and had started setting maximum prices for petroleum products in an attempt to curb prices in conflict with competition and consumer interests. Fuel prices plunged nearly kr 25 overnight with the introduction of the price ceilings, causing unrest among fuel companies. Even this policy, however, didn't succeed in mollifying consumers, since the real factor behind expensive fuel is seen as extremely high taxes. The recent decision of the government to raise these taxes only proves the consumers' cause as they raise their voices to cut tax rates, besides cutting into the profit margins of the fuel distribution companies.
Çetin called on consumers to boycott the price hikes by halting fuel consumption. He defined selling a liter of gasoline for over TL 3 when its cost is just TL 1 as "highway robbery."
