Deputy Neil Inder of Guernsey has announced plans to submit budget amendments calling for a freeze on fuel duty and a 5p reduction in white diesel prices at the pumps. He cited "exceptional circumstances due to global events" linked to the ongoing Middle East conflict as justification for the measures.
Under current plans, fuel duty is scheduled to rise by inflation at 4.3% from 1 January 2027, bringing duty rates to 94.4p per litre. However, diesel prices have surged across Europe due to the conflict, with the RAC motoring organisation noting that diesel has hit an all-time high. In the UK, diesel prices recently reached £2.00 per litre, while Guernsey has experienced record fuel prices.
Inder argued that the cost-of-living impact would be severe, stating that "diesel really does make the world go round and the wheels turn in Guernsey". To fund the proposals, he suggested reducing civil service numbers, estimating the savings would equate to four or five posts. He said that under normal circumstances he would support duty increases, but the current global climate demanded a different approach.
White diesel, used for cars, trucks and buses, carries standard fuel duty, while red diesel used in agriculture and fishing receives a heavily reduced rate or is duty-free.