Please use this identifier to cite or link to this item:
https://hdl.handle.net/20.500.14365/2282
Title: | THE RATIONALE BEHIND TURKEY'S HIGH GASOLINE PRICES | Authors: | Biresselioglu, Mehmet Efe Demir, Muhittin Hakan Ozyorulmaz, Evrim |
Keywords: | Gasoline pump price Turkey pricing regime OLS public policy evaluation Oil Prices Economic-Activity Increases Feathers Rockets |
Publisher: | Sage Publications Ltd | Abstract: | As oil prices increase, companies experience rising costs and falling profits, leaving governments to deal with the increasing interest rate, inflation and unemployment. However, on the consumer side, the key concern of increasing oil prices is their direct impact on the gasoline pump prices. Consequently, oil price rises have always been an important part of the public debate, especially in countries experiencing high prices for gasoline, such as Turkey. After decades of high prices, Turkey has the most expensive gasoline in the world, at 2.64 $/litre as of Quarter 2 of 2013. The aim of this paper is to reveal which factors are most important in determining gasoline pump prices in Turkey. In addition, a comparison of the periods with different pricing regimes is presented in order to demonstrate the actual effects of policy changes imposed by the government. The results show that, rather than the market variables, retail pump prices are primarily determined by variables that are more of a macroeconomic nature. This conclusion suggests that these market variables are utilized by companies in the market as tools for regulating prices that can be perceived an informal automatic price regulation mechanism. | URI: | https://doi.org/10.1260/0958-305X.25.8.1359 https://hdl.handle.net/20.500.14365/2282 |
ISSN: | 0958-305X 2048-4070 |
Appears in Collections: | Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection |
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