Call for temporary fuel duty cut in Jersey

Fuel duty will be cut by ten pence a litre in Jersey for the rest of the year, if the States Assembly agrees.

The proposal has been put forward by Deputy Lucy Stephenson, who says it will follow through on her commitment to tackle the cost of living, and help with spiralling costs that have been exacerbated by conflict in the Middle East.

Fuel costs jumped after the war in Iran began in February because of the disruption caused to the production and transportation of energy.

Oil prices have fallen following news of a peace deal.  A 14-point memorandum of understanding has been signed which includes promises to free-up shipping in the Strait of Hormuz.

Deputy Stephenson says she still wanted to lodge the proposition because of ongoing uncertainty and the higher costs islanders have experienced in recent months.

She told Channel 103:

"I included a commitment to reduce fuel duty to help people struggling with the cost of living in my manifesto and I committed at one of the hustings that I would bring a proposition.

 Deputy Lucy Stephenson 

"When it comes to debating it, the States can take into account the current global context, the impact it's had on local prices, but fundamentally, islanders told us at the election that the cost of living was the number one priority for them, they're struggling with costs, and this is one of the levers Jersey can pull to help reduce costs.

"10p per litre production on road fuel represents around an average of about £5 a fill up for an average family car, so it will make a difference to people."

Fuel duty was frozen in 2023, 2024 and 2025 in Jersey to help with the cost of living, but in the 2026-29 budget, it returned to increasing in line with inflation.

Deputy Stephenson estimates the cut, which she hopes will be implemented from 1 October, will cost just over £900,000.

Deputy Stephenson added:

"When you look at how the duty works, government actually has probably been making more money than was forecast on fuel already because they charge GST on the total price, including the duty.

"So while prices have soared, actually government's probably been collecting more money than it would have expected.

"That can be used to offset this, and it is only a three-month reduction - there are options available to government, which means that it shouldn't cause any huge financial pressures."

It's hoped this will be debated in the States sitting on 14 July, so the Treasury Minister can bring back any changes in September, following summer recess.