by Burak Akinci
ANKARA, March 24 (Xinhua) -- Drivers pulling into gas stations across Türkiye on Tuesday faced a fourth round of fuel price hikes since the outbreak of the Iran war, with cumulative increases averaging more than 20 percent nationwide, according to industry estimates.
The surge, driven by global oil market volatility and fears of supply disruptions around the Strait of Hormuz, has pushed gasoline to 64 lira (around 1.44 U.S. dollars) per liter and diesel to 79 lira (1.79 dollars) per liter.
"Because gasoline prices have increased, everything that depends on it is going up," said Ercument Gumuskan, a taxi driver in Ankara. "Food prices are rising too, and Türkiye was already expensive for many households after years of high inflation."
Türkiye relies heavily on imported oil and gas, leaving it exposed to external shocks. Authorities have responded with a sliding-scale tax system that reduces fuel levies to cushion price increases, but gasoline costs have still outpaced other fuel categories.
"The state is sacrificing tax revenues to keep pump prices from rising further," said Senol Babuscu, a finance professor at Baskent University in the Turkish capital. "But this buffer is not infinite. If the conflict persists, the fiscal cost will become harder to sustain."
His warning echoes statements from Treasury and Finance Minister Mehmet Simsek, who has cautioned that the scheme may prove unsustainable long-term.
Babuscu also flagged risks to Türkiye's fight against inflation, currently running at 31.5 percent annually. "Fuel is a key input in transportation and agriculture. Higher prices feed directly into food production costs and could derail the disinflation process policymakers are trying to achieve," he said.
At a station in Ankara, frustration was evident. "If the war drags on for months or years, it will dramatically impact us," said motorist Tufan Usta. "Things don't look good at all."
Ahmet Yazman said that he was considering switching to public transit. "The future looks quite bleak. We are helpless regarding what's happening."
A report by the Economic Policy Research Foundation of Türkiye warned that a prolonged Gulf conflict could worsen cost pressures on Turkish industries already squeezed by high interest rates. It estimated that a 10-dollar-per-barrel rise in oil prices could add 4.5 billion to 5 billion dollars to the country's current-account deficit, risking a feedback loop of rising costs, weakening external balances and renewed inflation.
