A Jersey vehicle breakdown service owner has reported that rising fuel prices have cost his business between £9,000 and £11,000, highlighting the severe financial strain energy costs are placing on local enterprises.
Oliver du Feu operates a tow truck service where vehicles consume between 80 and 120 litres of diesel every two days, making fuel expenditure a substantial operational expense. He argued that fuel duty would need to be reduced by 30p to 50p per litre to help businesses like his manage the escalating costs, and warned that he may need to increase charges to customers if prices continue climbing.
The situation reflects broader economic pressures across Jersey. According to the government's 2026 budget proposal, fuel duty is set to rise by 2.6 per cent rather than be cut, with rates established at 67.54 per hectolitre for higher-octane petrol and 65.55 for regular petrol and diesel. This reverses three years of government freezes on fuel duty implemented in 2023, 2024 and 2025 to ease cost-of-living pressures.
Deputy Lucy Stephenson had proposed a temporary 10p per litre reduction in fuel duty for the period from October to December, but withdrew the proposition following what she described as "constructive discussions" with Treasury Minister Alan Maclean. Maclean characterised duty cuts as a "blunt tool" that would primarily benefit wealthier people, and indicated the government would instead pursue "targeted measures" within its budget to address cost-of-living challenges.
Fuel prices have risen significantly since the outbreak of conflict between the United States and Iran in February. The director of ATF Fuels in Jersey, Jon Best, explained that
wholesale fuel prices have reached their highest level in four monthsand that
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.
Carl Walker from the Jersey Consumer Council stressed that fuel price increases affect far more than just motorists. He noted that
of everything that we consume in this island, 97% is imported. 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 Consumer Council reported that usage of its fuel and food price comparison website has more than doubled since the previous year, reflecting heightened public concern about living costs.
How do Jersey's fuel prices compare internationally?
In the United Kingdom, petrol and diesel prices have reached their highest levels since 2022, placing Jersey within a broader regional energy cost crisis. Current retail prices at Jersey fuel stations reflect this pressure, with unleaded petrol listed at 157.90p per litre and diesel at 175.90p per litre as of mid-September 2026.
What role does fuel duty play in government finances?
Fuel duty revenue continues to support Jersey's Climate Emergency Fund, with 9 pence per litre from fuel duty receipts allocated to environmental initiatives. This dual purpose—generating revenue for climate action while funding general government operations—complicates efforts to provide temporary relief through duty reductions.
When will the government decide on fuel policy?
Treasury Minister Maclean acknowledged that
it is possible people might feel worried that there would be no relief before next year, but suggested that
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.The government is scheduled to publish its proposed budget by the end of September, with debate in the States Assembly occurring in December 2026 before the law is formally published in April 2026.
The decision to pursue targeted measures rather than a blanket fuel duty cut reflects the government's view that temporary reductions would provide insufficient relief while creating budget shortfalls. However, businesses like du Feu's breakdown service and households across the island continue to face mounting pressure from energy costs that show no immediate sign of moderating.
Key Facts
- A Jersey breakdown service reports fuel costs of £9,000 to £11,000 due to rising prices and frequent refuelling requirements
- A proposed temporary 10p per litre fuel duty cut for October to December was withdrawn in favour of targeted budget measures
- Jersey's 2026 budget includes a 2.6 per cent rise in fuel duty, reversing three years of government freezes
- The Jersey Consumer Council reports doubled website usage as households and businesses seek fuel and food price comparisons
- Fuel duty revenue continues to support the Climate Emergency Fund with 9 pence per litre allocated to environmental initiatives
