Fuel Providers Report Steady Decline in Pump Prices
Two of the largest fuel suppliers in the Channel Islands, Rubis and ATF Fuels, have indicated that pump prices are gradually decreasing. Both companies noted that recent reductions in wholesale fuel costs are now being reflected at local forecourts in Guernsey and Jersey.
The price of petrol and diesel peaked in May during the Iran war tensions before beginning to decline. A spokesperson for Rubis stated that if wholesale prices continue their downward trend, the company anticipates
"to see further reductions passed on over time".
In the past two weeks, global oil prices have reverted to levels not seen since before the Iran conflict. The RAC reported that diesel prices experienced the fastest monthly decline since 2000 in June, with costs falling by 17p per litre. Petrol prices have also decreased, though the reduction has been less pronounced compared to diesel.
In an online statement, the Jersey Consumer Council welcomed the price reductions but advised residents to
"shop around". The council also cautioned islanders against expecting prices to fall as rapidly as they had risen, explaining that
"When wholesale prices rise, retailers typically pass these increases on swiftly. In contrast, when wholesale costs fall, reductions at the pump tend to happen more gradually". They further noted,
"This is partly due to consumer behaviour, as drivers are more likely to actively compare prices when costs are rising than when they are falling".
The recent price decreases follow a proposal by a Jersey politician to reduce fuel duty for three months to assist islanders with the cost of living.
Further Reductions Anticipated Over Time
Rubis emphasized that its primary focus has been to
"maintain secure and healthy fuel stocks". As these stocks are replenished with new deliveries acquired at lower wholesale prices, the company expects these reductions to
"progressively flow through the supply chain".
A spokesperson for Rubis added,
"Over the past few weeks, we have already seen prices fall for petrol and for diesel and these reductions are being passed on to forecourts and ultimately consumers. If global wholesale prices continue to fall, we expect to see further reductions passed on over time."
ATF Fuels reported that costs have been declining since the peaks observed in March and April, and consumers have likely noticed this reflected in pump prices. The company further explained,
"While the crude prices have fallen significantly, the cost of refined products such as diesel, petrol and kerosene have been slower to fall. This is primarily due to infrastructure damage caused by the war in Iran and the costs associated with refining crude."
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