Şimşek Said the Government Aims to Ease Cost Pressures and Reduce the Impact on Inflation Expectations and Pricing Behavior With the New

We are zeroing the ÖTV on diesel for the rest of August and moving to a tiered application until the end of the year to limit the reflection of the high increase in diesel prices, driven by geopolitical developments, on consumers and producers, Şimşek said in a statement on his social media account. Şimşek noted that the fiscal space created through budget spending discipline and the fight against informality is being used to support the disinflation process. "Thus, we aim to alleviate cost pressures as well as reduce the effects on inflation expectations and pricing behavior, he added.

The minister reiterated the government's commitment to policies aimed at ensuring price stability, which he described as a prerequisite for permanent welfare gains and a fairer income distribution. "We will continue our policies decisively to achieve price stability, Şimşek said. The tiered ÖTV application for diesel was introduced by a presidential decree, according to Şimşek's remarks. The measure comes amid rising fuel prices influenced by geopolitical tensions.