Petrol and diesel are sold at high prices in Turkey, a fact mostly attributed to the high taxes levied on firms operating in the sector. However, these firms do not engage in price competition, which leads to high-priced fuel. Currently there are 53 companies in the sector but five of these firms earn five times the total revenue of the remaining 48 put together. The EPDK sources told Today’s Zaman that work is under way to ease fuel importing conditions which will enable small firms to directly import fuel and diesel from abroad. The amendment will add to the establishment of a more competitive fuel market, too, the sources stated.
Currently firms in the sector mainly purchase their fuel from the Turkish Petroleum Refineries Corporation (TÜPRAŞ). While the five largest firms -- Petrol Ofisi, Shell-Turcas, Opet, Total and BP -- also import, small firms are unable to purchase fuel from overseas due to difficulties in the import regime, such as cash flow. The EPDK is planning to ease such bureaucratic and financial obligations for importing fuel. According to an EPDK source competition in large cities is almost nonexistent, while in the provinces small firms manage to compete on price. Previously, the Competition Board introduced ceiling prices, but the system was unable to give positive results.
According to data from the Petroleum Industry Association (PETDER), 16.6 billion liters of gasoline and diesel were sold in the first 11 months of 2009. Petrol Ofisi sold 4.6 billion liters as the biggest seller, Shell-Turcas sold 3.5 billion liters and Opet 2.7 billion liters. These five members of PETDER sold a total of 14.4 billion liters in the first 11 months of 2009, while the other 48 firms sold a total of 2.1 billion liters out of a total of 16.9 billion liters sold in the market in the first 11 months.
