Rising Fuel Prices Strain Businesses, Fueling Calls for Duty Cuts

Businesses are grappling with the escalating costs of rising fuel prices, with some reporting significant financial strain and advocating for substantial reductions in fuel duty. One tow truck business owner stated that increased fuel prices have cost his operation an additional £10,000.

"Fuel prices have continued to rise," noted an individual identified as Du Feu. He suggested that fuel duty would need to be reduced by 30p to 50p per litre to alleviate the burden on businesses. While his business has absorbed the higher costs thus far, he anticipates potentially needing to pass these expenses on to customers. He also projected that fuel prices would continue to climb.

Treasury Minister Alan Maclean described duty cuts as a "blunt tool" that disproportionately benefits wealthier individuals. From the perspective of the Jersey Consumer Council, Carl Walker pointed out a common misconception that fuel prices only affect drivers. "Of everything that we consume in this island, 97% is imported," Walker stated. "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 Jersey Consumer Council has observed a more than doubling in website traffic for its fuel and food price comparison tool compared to the previous year. In the UK, petrol and diesel costs have reached their highest point since 2022.

The government is preparing to release a proposed budget by the end of September, with debates scheduled for December. Deputy Lucy Stephenson indicated that she had withdrawn her proposition to cut fuel duty following "constructive discussions" with Maclean. Maclean stated that he could not comment on budget measures during their development phase. He acknowledged that people might be concerned about the lack of relief before next year. "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," Maclean said. "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."

Jon Best, director of ATF Fuels in Jersey, reported that wholesale fuel prices have reached a four-month high. "While the Channel Islands are geographically distant from the Middle East, they are not insulated from the global energy market," Best explained. "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."