International oil prices have shown significant changes over the last year and have fallen down to 45$ /barrel level from around 110$ levels. The oil prices and the dynamics behind it have strongly affected many markets including the economies of countries such as Turkey. The paper briefly discusses oil price movements throughout 2014 including the first half of 2015 and presents major impacting factors that affect the price dynamics, such as US shale oil, supply and demand dynamics. The transmission of oil price fluctuations into Turkish pump prices has been evaluated and the constituents of pump prices have been analyzed over a period encompassing the last 10 years. The important factors that have affected the pump prices and the pricing behavior of oil companies in Turkey, apart from the international market trends, were the exchange rate (USD/Turkish Lira) and the price interventions by the Turkish Energy Market Regulatory Authority. The paper provides an in depth discussion and a comparative assessment on the development of pump prices in Turkey with some major European Markets in the Mediterranean region closer to the Turkish market such as Greece, Italy, France & Spain.
Keywords: Oil price, gasoline price.
Jel Code: Q40, Q41