Businesses in the Channel Islands are preparing for the impact of potential fuel increases following the eruption of the US-Israel war with Iran.
Ian Vaudin, managing director of Donkey Taxis in Guernsey said the conflict was making him feel “really nervous” about what that might mean for fuel prices.
Last week, crude oil prices rose to their highest level in more than two years.
Michael Beausire, joint managing director of Le Mont Saint Garage said “unfortunately we will see the petrol prices going up, it won’t be straight away, but in time it will gradually creep up”.
“We don’t like putting the price of fuel up but unfortunately our hands are tied with purchasing the fuel and the State’s grants as well on it” Beausire added.
Fuel duty in Jersey is 64p per litre, in Guernsey it comes to 90.5p per litre which includes what was previously called ‘motor tax’ until it was bundled together in 2008.
Ian Vaudin said he would like to see Guernsey’s government to “reduce duty on a temporary basis” to help businesses absorb it within their costs.
Taxi fares in the Channel Islands are mediated by the government, and Vaudin hopes to see fuel taxes reduced instead of fare increases to mitigate higher prices.
Guernsey’s government has been approached for comment.
‘Gradual increase’
Beausire is urging customers not to panic buy fuel.
“There won’t be a massive 20p jump as such… It’ll be a gradual increase, I’d probably say, over the next couple of months, as opposed to next week being an extra £10 price of fuel” he said.
Meanwhile, thinking long-term, Carl Walker, Chairman of Jersey’s Consumer Council is asking businesses to make a “pledge” that they would bring prices back down again once they were able.
In the meantime Walker hoped businesses would be transparent about price increases by explaining the reasons for it.
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