Erdogan fuel increase statement: It is among the cheapest countries in Europe

President Recep Tayyip Erdoğan made remarks about the economy in an interview with journalists after his visit to Saudi Arabia, Qatar and the United Arab Emirates (UAE).

When asked about his approach to the discussions on the SCT increase on fuel, Erdogan said: “Can you give citizens time to relax economically?” he gave the following answer to the question:

“Our Ministry of Treasury and Finance has made a regulation on fuel oil tax matters. There was no inflation update for a long time, especially since the SCT was fixed. For this reason, said increase was made in the SCT. In particular, we needed such an arrangement in the framework of the intense financial burden caused by the earthquakes of February 6, in this sense, in the framework of budget requirements.

Despite all this, Turkey is one of the cheapest countries in Europe in terms of fuel prices.

An automatic fuel pricing mechanism already exists. It is determined within the framework of world prices. It is a tax regulation made in the scope of the needs of Turkey related to the effects of the earthquake and the fight against earthquakes made with the increase of SCT”.

EXPLANATION ABOUT PENSIONS

One of the questions directed at Erdogan was about pensions.

“Although the increase in civil servants was satisfactory, the increase in retirees turned out to be somewhat insufficient. Will you have a new approach to pensions?” In response to the question, Erdogan said:

“We have to re-evaluate the retirees from the end of the year.

We made the best increase we could, forcing the budgetary conditions on the civil servant, worker and pensioner. We promised we wouldn’t crush anyone because of inflation, and so far we haven’t.

We increased the rate of increase to 25 percent by giving additional social participation to our retirees SSK and BAĞ-KUR. Retirees of civil servants also received a 25 percent increase. The increases were made above inflation.

While we are making these increases to our officials, employees and retirees, some opportunists and greedy almost reach the pocket of citizens. We will not allow these opportunists. Our Ministry of Commerce has tightened its inspections and we are increasing criminal proceedings.”

‘THE OIL IN GABAR IS STILL NOT REFLECTED TO THE CITIZENS’

As for how the oil in Gabar will contribute to the pockets of the citizens, Erdoğan said: “The oil in Gabar has not yet started to enter the pockets of the people. We are currently in the extraction phase. And I hope that as soon as we take it out and into the state, into the treasury coffers and bags, the Gabar oil will quickly reflect on our citizens, ”he said.

“I hope that we reflect what is most appropriate and ideal for our citizens,” Erdogan said, continuing as follows:

“The gas reserve in the Black Sea was discovered in August 2020. As of April 2023, 10 planned wells within the scope of Phase 1 were commissioned. Thus, Black Sea gas was included in the system and began to be used in our homes.

If we made free natural gas for 1 month in the houses in April, and natural gas equivalent to 25 cubic meters for 1 year, when Gabar oil is integrated into our system, it will definitely have a reflection on our citizens.

It will take some time for the discovered oil to enter the system and be used as fuel. On the other hand, the source of the Family and Youth Bank will be this oil from Gabar and natural gas from the Black Sea. I care about the Norwegian model in this regard. That is why we are creating the Family and Youth Bank. We will keep a certain reserve there. Families and young people will benefit from this reserve. This will have another reflection on our citizens”.

‘GABAR OIL REFLECTION BEGINS IN 2024’

Erdogan said: “The positive reflection of Gabar oil on the economy will start in 2024,” continuing as follows:

“Currently we are producing 12-13 thousand barrels per day. Hopefully, it will reach 100 thousand barrels and therefore Turkey will have doubled its production, by the end of 2024. In fact, we can say that the commissioning date is at the end of 2024.

We will drill about 100 wells. We are currently running all drilling rigs in Türkiye and neighboring countries. There are miles of roads in the mountains. There is a lot of feverish work”.