Fuel ceiling price imposed by Energy Market Regulatory Authority, EMRA, will harm not only the sector, but also the consumers and country's economy, said Turkey's Petroleum Industry Association.
The only way to create a market that will benefit the consumers by providing low prices is reducing the taxes on fuel prices not imposing a price ceiling, said the association in a written statement on Tuesday
EMRA announced on Feb. 19 that in order to regulate gasoline and diesel oil pricing, "ceiling prices" would be applied to protect consumers and to regulate the profit margins of fuel distributors and dealers in Turkey.
According to the decision, the profit margin for gasoline at present realizes a maximum of 0.34 liras per liter while the profit margin of diesel oil reaches a maximum of 0.47 liras per liter.
The association also stated that ceiling price decision will reduce the trust to the free market in Turkey, addressing the implementation as an intervention to the market and a damage to the economy.
The ceiling price decision will affect the competition in the sector negatively and small business may face bankruptcy, according to the association.
By Ugur Serhan Ozcan
Anadolu Agency
ugur.ozcan@aa.com.tr