Jersey fuel duty cut proposal withdrawn as businesses report price impact

Treasury minister calls broad fuel relief ‘blunt tool’ favoring wealthier residents

Jersey Deputy Lucy Stephenson has withdrawn her proposition to lower Jersey’s fuel duty — currently about 65 pence per litre — by 10 pence per litre between October and December, BBC News reported. Stephenson said she withdrew the measure following “constructive discussions” with Treasury Minister Alan Maclean, who is preparing the government’s budget for publication by the end of September and debate in December.

The withdrawal followed public testimony from local businesses warning that fuel costs were straining their operations. Oliver du Feu, who owns a vehicle breakdown service, told BBC News that higher fuel prices had cost his business between £9,000 and £11,000. He said the increase had a “big impact” because his trucks, which held between 80 and 120 litres of diesel, were filled every two days.

Du Feu said fuel duty would need to be reduced by 30p to 50p per litre to help businesses manage costs. He added that he expected prices to keep rising and that, while his business had absorbed higher costs so far, he might have to charge customers more.

Maclean rejected the case for a duty cut, describing such reductions as a “blunt tool” that largely helped wealthier people. He said the government would instead pursue “targeted measures” in the budget to help residents with the cost of living.

When asked about the possibility that residents would see no relief before 2027, Maclean told BBC News: “Of course things are much more expensive than they were three years ago, but we’ve seen the pace of increases reduce slightly, which is encouraging. The first quarter of next year is going to be where people are likely to feel the greatest pressure, and that’s what we’re focusing on.”

Carl Walker, from the Jersey Consumer Council, said there was a “misconception” that fuel prices only affected people who drove. “Of everything that we consume in this island, 97% is imported,” Walker said. “It needs fuel to get here and it needs fuel to be delivered … ultimately it will hit consumers in their pockets, even if they’re literally buying a litre of milk in the shop.”

The council said the number of people using its fuel and food price comparison website had more than doubled since the previous year.

Jon Best, director of ATF Fuels in Jersey, attributed local price pressure to global market conditions. “Wholesale fuel prices have reached their highest level in four months,” Best said. “While the Channel Islands are geographically distant from the Middle East, they are not insulated from the global energy market. Fuel is traded in an international marketplace, meaning disruptions to supply, production, or distribution anywhere in the world can have a direct effect on local wholesale costs.”

BBC News reported that fuel prices in Jersey have continued to rise since the outbreak of the United States’ war with Iran in February. In the United Kingdom more broadly, the cost of petrol and diesel is the highest it has been since 2022.

Stephenson did not detail the content of her discussions with Maclean, and Maclean said he could not discuss budget measures as they were being developed.