Jersey proposes fuel duty freeze as diesel tops £2 a litre

Scaffolding and tree-surgery firms report diesel costs squeezing margins

The Government of Jersey has proposed freezing fuel duty in 2027 in a bid to help ease cost-of-living pressures, a step some businesses said they would welcome even as they warned it would offer limited relief if global fuel prices keep climbing. Diesel prices in Jersey have reached more than £2 per litre in recent weeks, and prices in the UK recently topped £2 a litre.

Fuel duty was frozen in Jersey from 2023 to 2025 before rising in line with inflation in 2026. In its proposed budget for 2027, the government has suggested freezing it once again, saying “maintaining fuel duty at its current rate will help avoid additional costs for households and businesses that rely on transport, providing continued support at a time when many islanders remain under financial pressure”.

Global leaders have since made efforts to ease the strain on supply, but some businesses on the island said they worry the freeze will not be enough to offset global prices.

Kelly Keating, from A&A Scaffolding Solutions, said “rising diesel prices are a real concern for us, particularly when they come on top of so many other costs that seem to be increasing across Jersey”. “Construction is taking a hard hit,” she said. “We rely on diesel for machinery, vehicles and deliveries, so increases put direct pressure on the cost of carrying out work. Alongside rising material, freight and operating costs, this is squeezing margins and making it harder to price projects with confidence.”

“A freeze in fuel duty would be welcome,” Keating said, “but our concern is that it would offer limited relief if global fuel prices continue to rise. The wider issue is the cumulative impact. Businesses can only absorb so many increases before they affect investment, project viability and ultimately the prices customers pay.”

Fuel costs are also having a “noticeable impact” for tree surgeons Jonathan Le Maistre Ltd. Darren Hopkins, from the firm, said “we depend on our vans, trucks, chippers, stump grinders, and other machinery that consume significant amounts of fuel”. “Increased diesel prices will raise our operating costs,” he said, “reducing margins on jobs and making it more difficult to absorb costs without passing some of them on to our customers”. Hopkins said continued increases would be a “concern for their business, and the wider industry”.

Some firms are managing so far. Jeremy Phillips, from Barette Plant Hire, said the rise “hasn’t been too much of an issue so far, but that fuel surcharges are being added to hourly rates”. He said “if the prices keep going up, customers aren’t going to be carrying on with their projects”.

The proposed freeze follows the withdrawal of a plan to cut fuel duty. Deputy Lucy Stephenson called for a reduction in the run-up to the unveiling of the 2027 budget, but those plans were withdrawn following assurances from ministers that support was coming. Speaking at the time, Treasury Minister Alan Maclean said the government “didn’t like the idea of reducing fuel duty because it wasn’t targeted”. Ministers instead opted for a freeze, prioritising targeted support for families and those “struggling the most”.

Responding to the fresh concerns from businesses, Maclean said, “Rather than expecting businesses to absorb increased costs such as higher fuel prices, the budget provides support directly to consumers to help them manage those pressures and spend in the local economy.” He said fuel prices are “largely driven by global markets and geopolitical events outside Jersey’s control”, adding that “what the government can do is avoid adding further pressure where it can”. The proposed freeze, he said, would help mitigate the impact of price rises by reducing the level of duty in real terms.