The opening of the scissors in the dollar confused the fuel sector

Before the May 14 elections, the widening of the gap between official rates and market rates in the foreign exchange market had a direct impact on the fuel industry.

While the official dollar selling rate published by the Central Bank (CBRT) was 19.42 yesterday, the banks’ dollar selling rate was at levels of 20.50.

As of this week in the banks, the difference between the buying and selling rates in dollars was 6 percent.

The fuel sector, which calculates its sales prices according to the formula determined by the EMRA and the official exchange rate, was also deeply affected by this unprecedented situation in the exchange market.

The supplier companies, which began to receive $20.50 from the bank when importing, began to reflect this in the fuel distribution companies, but since the pricing is done according to the official dollar rate of 19.40 and the duration of the bilateral exchange rate situation is uncertain, the industry has difficulties in pricing.

THE HIGH CONTENT OF AUTOMOBILE GAS IS ON THE AGENDA

Representatives of the fuel industry, in statements to Sozcu.com.tr, pointed out that the first concrete reflection of the phenomenon of the double exchange rate in foreign currency occurred in automotive gas (LPG), and that importing companies have increased distributors at approximately 30 cents per liter as of today.

While the sector evaluates reflecting this rise to the consumer, it is stated that the duration of the bilateral exchange situation will be decisive.

On the other hand, it was seen that the Kadogaz company increased by 30 cents the gasoline for cars from last night.

Stating that almost half of Turkey’s auto gas consumption is covered by imports, and that the importer has started importing at a US$20.50 rate, industry representatives emphasized that if the market rate remains at these levels, the entire industry will have to make an increase

Pointing out that almost half of diesel consumption is covered by imports, the representatives of the sector pointed out that there is still no concrete development in this product, but the same dynamic is also at work here, and that if these levels are permanent in the type of change, a problem will arise.

Stating that there is a gross profit margin of around 10 percent in the fuel sector and that the 6 percent marketing margin in the exchange rate is unsustainable, industry representatives said they hope this situation will be transitory, otherwise the energy authority will have to take action.

WHY DID THE BANKS OPEN THE SCISSORS?

While the CBRT, whose reserves were gradually declining due to the high current account deficit and insufficient foreign capital inflows, increased measures to reduce the demand for foreign currency, exchange rates opened up.

Banking sources affirm that the CBRT wants to open the gap.

The banks’ forex buying-selling spread, which had risen since early last week after the CBRT placed restrictions on banks’ forex purchases the previous week, stood at 6 percent this week. .

The CBRT instructed banks to “increase the forex and gold bid-ask spread” in February, on the grounds of curbing foreign exchange demand, and the spread increased to 1-2 percent, but this week it increased gradually.

Strict marking of currency transactions brought some of the transactions to the Grand Bazaar.