Rural - Normal Diesel Differentiation
Is Coming To An End

Pursuant to "Communiqué Amending Communiqué on Technical Regulations regarding Diesel Types" of the Energy Market Regulatory Authority as published on November 9, 2010 in the Official Gazette, the rural diesel used in agriculture and transportation sectors will be discontinued to be produced and sold as of January 1, 2011.

Upon ending the rural diesel - normal diesel differentiation within the scope of compliance to the European Union, single tariff excise tax will be applied in diesel starting by the beginning of the new year. Therefore, this will bring an increase in the costs for the logistics and agriculture sector using this rural diesel. The essential motivation in preparing this law is to remove the rural diesel with sulphur level up to 1,000 PPM and reduce this to 10 PPM as the same limit with the normal diesel and to reduce the damage to the environment.

Within the scope of the new arrangement, rural diesel – normal diesel differentiation will be discontinued by the beginning of the new year and the double tariff in excise tax applied to diesel will be removed. The current excise tax for rural diesel is TL 1,2345, while the current excise tax for normal diesel is TL 1,3045. As only the normal diesel will remain in the market starting by January 1, 2011, only the tariff with TL 1,3405 will be applied.

According to current Opet pump rates on December 13, 2010, the normal diesel is being sold in Istanbul for TL 3,24 per liter, while the rural diesel is sold for TL 3,10 per liter. As a result of the communiqué, there will be a markup of 4,51% in diesel costs. This rate is almost the same for all cities.

During the days the business plans related to the year 2011 are being completed, we would like to share this important development occurring with a law amendment recently and wishing you a auspicious year in 2011.