Living in a 392$/barrel world - Turkish oil market in 2011
10:14 AM
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Turkish petroleum prices at the pump are as follows:
First of all about prices; The price consists of 1/3 refinery price and 2/3 tax. Therefore a 35% increase in world oil prices is reflected as 13.9% increase at the pump...Below is the table for prices in TL.
The other result is a decreasing consumption of Gasoline and consumer demand towards cheaper and more efficient fuels.
In 2011, Turkish gasoline consumption dropped 5.4 % , this has three reasons
1. People are buying preferring smaller engine size (<1600 cc), due to taxes and expensive oil prices
2. People are chosing diesel cars over gasoline cars since diesel is cheaper, more energy dense (more km/liter) and efficient engine technology.
3. Gasoline cars in Turkey can be retrofitted with LPG units with a cost 600-700$... There are estimated to be a 2.5 million gasoline powered cars with LPG units(2011). Since LPG tax is lower
Therefore, if you buy a car, you hardly give up the car for fuel price reasons. But you try to minimize operating costs (diesel, LPG fuels) despite upfront costs (diesel cars cost more, LPG unit). That is to say, even a 400$/barrel world will not stop the car sales figures but shift the consumer choice for more expensive(in sales prices) but relatively less costly(fuels) to operate cars.
References
Daily official oil prices from EPDK , https://ppbp.epdk.org.tr/Rapor/Akaryakit/Paylasim/RaporSekizFirma.aspx
Daily Exchange Rates from Turkish Central Bank http://www.tcmb.gov.tr/
- gasoline prices are 4.5 TL/liter (2.54 $/liter), (1.9 €/liter) (9.6 $/gallon)
- diesel prices are 3.9 TL/Liter
- 1 $ = 1.77 TL and 1 € = 2.37 (by the end of Feb 2011)
First of all about prices; The price consists of 1/3 refinery price and 2/3 tax. Therefore a 35% increase in world oil prices is reflected as 13.9% increase at the pump...Below is the table for prices in TL.
The other result is a decreasing consumption of Gasoline and consumer demand towards cheaper and more efficient fuels.
In 2011, Turkish gasoline consumption dropped 5.4 % , this has three reasons1. People are buying preferring smaller engine size (<1600 cc), due to taxes and expensive oil prices
2. People are chosing diesel cars over gasoline cars since diesel is cheaper, more energy dense (more km/liter) and efficient engine technology.
3. Gasoline cars in Turkey can be retrofitted with LPG units with a cost 600-700$... There are estimated to be a 2.5 million gasoline powered cars with LPG units(2011). Since LPG tax is lower
Therefore, if you buy a car, you hardly give up the car for fuel price reasons. But you try to minimize operating costs (diesel, LPG fuels) despite upfront costs (diesel cars cost more, LPG unit). That is to say, even a 400$/barrel world will not stop the car sales figures but shift the consumer choice for more expensive(in sales prices) but relatively less costly(fuels) to operate cars.
References
Daily official oil prices from EPDK , https://ppbp.epdk.org.tr/Rapor/Akaryakit/Paylasim/RaporSekizFirma.aspx
Daily Exchange Rates from Turkish Central Bank http://www.tcmb.gov.tr/
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