Saturday, July 18, 2009

Cap and Trade will look like THIS

The Turkish Government responded to the latest gas price decline by increasing taxes.

The resentment over the most recent increase in the special consumption tax (ÖTV) on fuel products, offsetting the previous drop in the prices of gasoline and diesel with the introduction of price ceilings several weeks ago, is growing.

As the salvos of consumers continue, representatives of the fuel distribution industry have also started to condemn the Finance Ministry's tax hike decision, even accusing the government of using the launch of price ceilings as a means to pretend it is actually concerned about consumers' interests.

After several warnings to obey the rules of pure competition, the Energy Market Regulatory Authority (EPDK) imposed a system of maximum price limits for the fuel market last month; this move caused the prices of gasoline and diesel to drop by over kr 20 overnight.