Members move to block petrol price rise

Friday 26 October 2018

There'll be more than 30 attempts to change the 2019 Budget when it's debated next month, including at least one to stop the ever increasing amounts of duty we pay on petrol.

One of the amendments which was lodged this week will try and keep the duty on petrol in Guernsey at the same level as it was this year.

If approved it would see the budget proposition that increases the duty to 70.1p per litre changed to say it "shall remain at 67p per litre".

The amendment was submitted by Deputy Peter Ferbrache, and seconded by Deputy Jan Kuttelwascher just some days after diesel in Guernsey broke through the £1.50 price point. 

Overall, if passed, it will freeze excise duty on petrol of all kinds, other than that used for air navigation. 

The financial effect of the amendment would result in a loss of revenue of approximately £600,000 in 2019. But this would still see the island hit a £400,000 surplus for the year, if all other parts of the budget are followed, Deputy Ferbrache said. He also argued it was not his job to find where the money could alternatively come from.

Pictured: Deputy Gavin St Pier presented his budget plans earlier this month, and the States will debate them on 6 November. Deputy Ferbrache said overall, he was happy with the plans - "they are the right direction".

In the UK, fuel duty was frozen for a ninth year in a row this year, leaving it at 57.95p per litre - while Jersey’s fuel duty is 45.47p, plus 5% GST. Deputy Gavin St Pier has previously warned the island's purse is fuelled by the duty the we pay in Guernsey, and that people are able to make savings in other ways.

Deputies Ferbrache and Kuttelwascher are not the only members of the States who are against the annual increases to fuel duty, something the island has had year on year since 2011.

One of the most senior members of Policy & Resources, Deputy Lyndon Trott is also against the continual increases.

"I was the only member of P&R who did not support the increase in fuel duty, as was the case at last year’s budget and the one before. My view is that the cost of motoring is simply too high in our island already. I believe that the benefits of using a motor car for most of us, far outweigh the dis-benefits," he said.

"There is also clear evidence that the reduction in sales at Guernsey pumps, is partly due to the fact that motorists return to Guernsey from trips to the UK and France with full tanks, due to the lower prices overseas. In the past, many returned with little more than fumes. The policy of setting prices at a premium here, is therefore self-defeating on a number of levels.

"Such behaviours have contributed to a reduction in duty in Guernsey, but with no corresponding environmental advantages. Clearly a nonsense.”