Türkiye will scrap a ​special consumption tax (ÖTV) on diesel until the ⁠end of ⁠this month, according to a presidential decree published in ​the country's Official ​Gazette on Thursday.

According ⁠to the decree, on Sept. 1 the diesel tax will be reinstated, rising incrementally by TL 3 ($0.0628) each month until it reaches TL 13.9006 per liter on Jan. 1, the same level as before the removal.

The price was set at TL 6 per liter between Oct. 1 and Oct. 31, and TL 9 per liter between Nov. 1- Nov. 30.

The price will be TL 12 per liter during the last month of the year and will rise again to TL 13.9006 per liter after Jan. 1, 2027, according to the decree.

The decree also removes diesel from Türkiye's sliding-scale tax adjustment system, implemented ⁠to limit the impact of rising oil prices following the outbreak of the U.S.-Israel-Iran war.

However, the decree ​said gasoline and liquefied petroleum gas (LPG) ⁠will remain in the sliding-scale ⁠system until ‌Oct. 1, when the ​system is set ⁠to be ⁠abolished.

Global energy prices have been fluctuating heavily in the past couple of weeks amid concerns that U.S.-Iran talks for ending the conflict have stalled.

Commenting on the decision, Treasury and Finance Minister Mehmet Şimşek said that the government would continue to implement its policies aimed at price stability.

"We are using the fiscal space we have gained through spending discipline and the fight against the informal economy to support the disinflation process," he said in a post on X.

To limit the impact of the sharp increase in diesel prices, caused by geopolitical developments, on consumers and producers, we are eliminating the special consumption tax on diesel for the remainder of August and implementing it gradually until the end of the year," he noted.

"In this way, we aim to alleviate cost pressures as well as reduce their impact on inflation expectations and pricing behavior," he added.

"We will resolutely continue our policies aimed at ensuring price stability, which is a prerequisite for lasting prosperity and a more equitable distribution of income."