Petrol up another 3p this year?

Wednesday 18 July 2018

Petrol duty could increase by 3p this year, Deputy Gavin St Pier has said.

Giving an update to the States assembly, the Policy and Resources President said under current plans, this years budget would contain another petrol price rise, as the total volumes being sold continued to fall.

If the 3p per litre comes before the States as part of this November’s budget, it will bring total petrol duty to 70p per litre – far more than in our neighbouring jurisdictions, the UK and Jersey.

Jersey’s fuel duty is 45.47p, plus 5% GST, and in the UK it is 57.95p – and it has been frozen for eight years. In stark contrast to this, Guernsey’s per litre fuel duty has surged by 28.2p since 2011. 

2011: 4p

2012: 4p

2013: 1.5p

2014: 2.3p

2015: 3p

2016: 6.7p

2017: 3.5p

2018: 3.2p

Motorists currently contribute just over £20m. a year to States coffers – roughly £5m. shy of being able to buy Aurigny another jet every year. 

Both Jersey and the UKs average per-litre fuel price currently trails Guernsey – at £1.15, £1.28 and £1.31 respectively.

Deputy St Pier said a new system of taxing motorists is currently being reviewed.

 “Fuel consumption continues to drop year-on-year in line with previous forecasts, highlighting once again that the current system for taxing motoring entirely through fuel use is wholly unsustainable. The States have directed that this be reviewed and this review has begun, working with the Committee for the Environment & Infrastructure. However, it will not have progressed sufficiently far for any alternatives to be recommended in the Budget Report to take effect in 2019. In the absence of this, if we simply choose to recommend maintaining the real value of motor fuel in our tax system, we estimate that this would translate into an increase in duty of 3.2p per litre.”

Pictured: Part of an Express report on fuel prices published earlier this year

Although fuel prices in Guernsey may currently be on average £1.30 a litre, the price did climb over £1.40 a litre earlier this year. Two garages were reported to be selling fuel at that price with others not far behind.

A previous Express report (pictured above) can be read here. 

Deputy Gavin St Pier's full speech, given on Wednesday 18 July, can be read here.