Several Jersey-based businesses have voiced concerns about escalating fuel expenses, citing the impact on operational margins and pricing strategies. Diesel prices have recently reached £2 per litre locally and across the United Kingdom, prompting global leaders to consider intervention measures.
In response, the Government of Jersey has put forward a proposal to maintain fuel duty at its current rate during 2027. Officials stated that this freeze would “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.” This marks a continuation of a similar freeze that was in place from 2023 to 2025, before duty rose in line with inflation earlier this year.
A&A Scaffolding Solutions, a local contractor, indicated cautious support for the freeze but expressed doubt about its effectiveness given ongoing global price pressures. The company emphasized that construction operations depend heavily on diesel for machinery, vehicles, and deliveries, and stressed that fuel cost increases compound other rising expenses including materials, freight, and operating costs. Similarly, Jonathan Le Maistre Ltd, a tree surgery firm, noted that fuel price increases create “noticeable impact” on its business operations, with machinery and vehicles consuming substantial fuel quantities.
Barette Plant Hire reported that current fuel costs have not posed significant challenges thus far, with fuel surcharges being incorporated into hourly rates. However, the firm cautioned that continued price increases could deter customers from pursuing projects. Treasury Minister Alan Maclean defended the government’s freeze approach, stating that direct consumer support was preferable to fuel duty reduction because such reduction would lack targeting. He noted that fuel prices are largely determined by global markets and geopolitical circumstances beyond Jersey’s jurisdiction, while the government’s role is to avoid adding pressure where feasible.
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