Businesses across Jersey have raised concerns about the impact of rising global diesel prices, which have recently exceeded £2 a litre locally and in the UK. The Government of Jersey has proposed freezing fuel duty in 2027 to help ease cost-of-living pressures, a measure that comes after the duty rose in line with inflation in 2026 following a freeze from 2023 to 2025.
Construction and services firms say the fuel price increases are hitting them hard. A&A Scaffolding Solutions said it welcomed the proposed duty freeze but warned it would provide limited relief if global prices continued to climb. The company noted that rising diesel costs, combined with increases in material, freight and operating expenses, are squeezing margins and making it difficult to price projects with confidence. Similarly, tree surgeons Jonathan Le Maistre Ltd said increased diesel prices would reduce margins on jobs and make it harder to absorb costs without passing them on to customers.
Some businesses are managing by adding fuel surcharges to their rates. Jeremy Phillips from Barette Plant Hire said higher prices have not been too much of an issue so far, though he warned that if prices kept rising, customers might abandon their projects.
Treasury Minister Alan Maclean defended the government's approach, saying it had chosen to freeze fuel duty rather than reduce it because a freeze was more targeted. He said the budget provides support directly to consumers instead of expecting businesses to absorb increased costs, noting that fuel prices are largely driven by global markets and geopolitical events outside Jersey's control.