Global diesel shield

Mithat Yurdakul - Following the crisis in the Middle East, the USA and European countries support producers against increasing fuel prices, while Turkey is taking precautions against the cost of diesel with gradual SCT.

After diesel fuel prices reached record levels in the USA, "red diesel", which is tax-free for producers, has come to the fore again. The US administration also put the diesel export ban on refineries on the agenda. Due to the crisis in the Middle East, the European Commission decided to cover up to 70 percent of the crisis-related additional fuel costs in agriculture, fisheries, land transportation, maritime transportation and energy-intensive industry until the end of 2026.

Türkiye has also been implementing Special Consumption Tax (SCT) measures on diesel, which the manufacturer uses extensively in transportation, for a while now. In accordance with the decision that came into force last August, the SCT amount on diesel was reset to zero for August, while a gradual increase in SCT was envisaged in the following months. While the SCT on diesel will be 3 lira for September and 6 lira for October, the SCT will be increased to 9 lira in November and 12 lira in December. The SCT amount on diesel will be applied as 13.9006 lira as of January 1, 2027, and the previously applied rate will be increased to the pre-mobile level. The decision taken to limit the reflection of the high increase in diesel prices on consumers and producers due to geopolitical developments was aimed at easing fuel-related production costs as well as balancing inflation expectations.

Support for farmers

Diesel support is also provided in agriculture. With the basic support created by combining old diesel fuel and fertilizer support, 50 percent of the diesel cost of producers registered in the Farmer Registration System is covered by the state. The payment for 2026 is calculated by multiplying the support coefficient value of 310 TL and the product coefficient. Metropolitan municipalities also provide fuel support to farmers from their own budgets. In addition, fishermen have been benefiting from SCT-free fuel for a long time.

25 thousand dollars risk premium payment to the crew

With the acceleration of oil shipments through the Strait of Hormuz, the cost of tanker transportation has also increased sharply. According to the Wall Street Journal, ship owners are offering additional payments of up to 25 thousand dollars per trip to sailors who will work on dangerous voyages.

The risk premium paid on some tankers with crews from India, the Philippines and China can exceed the annual income of the employees.

'Red diesel' move in the USA

In order to reduce fuel costs, US President Donald Trump has temporarily allowed the use of tax-free 'red diesel' on roads, which is normally used only in agricultural, construction and other non-highway vehicles.

With the decision signed by Trump, the payment of the federal consumption tax applied to the use of red diesel on roads will be postponed until the end of the year without interest or penalty. The decision is aimed to reduce costs, especially for farmers, truck drivers and employees. It is stated that if states provide similar tax benefits, truckers can save over 100 dollars on a single filling. Red diesel is specially colored to inspect tax-free off-road use.