Economics

Rising fuel prices 'cost tow truck business £10k'

A business says fuel duty will need to be cut by 30p to 50p per litre to help.

Rising fuel prices 'cost tow truck business £10k'

Oliver du Feu said fuel duty would need to be cut by up to 50p per litre to help manage costs.

Rising fuel prices are affecting businesses, with the owner of a vehicle breakdown service saying the increases had cost his business between £9,000 and £11,000.

Oliver du Feu said it had a "big impact" because trucks, which held between 80 and 120 litres of diesel, were filled up every two days.

This comes after a proposal to reduce fuel duty - currently about 65p per litre - by 10p per litre between October and December was withdrawn.

Jersey's treasury minister said there would be "targeted measures" in the government's budget to help people with the cost of living.

Treasury Minister Alan Maclean said cutting fuel duty would be a "blunt tool"

Fuel prices have kept rising since the outbreak of the United States' war with Iran in February.

Du Feu said fuel duty would need to be lowered by 30p to 50p per litre to help businesses manage costs.

He said he expected prices to continue climbing and, although his business had so far absorbed the higher costs, he might have to raise charges for customers.

Treasury Minister Alan Maclean said duty cuts were a "blunt tool" and mainly benefited wealthier people.

Carl Walker, from the Jersey Consumer Council, said there was a "misconception" that fuel prices only affected people who drove.

"Of everything that we consume in this island, 97% is imported.

"It needs fuel to get here and it needs fuel to be delivered... ultimately it will hit consumers in their pockets, even if they're literally buying a litre of milk in the shop."

The Jersey Consumer Council said the number of people using its fuel and food price comparison website had more than doubled since last year.

In the UK, the cost of petrol and diesel is the highest it has been since 2022.

The government is due to publish a proposed budget by the end of September before it is debated in December.

Deputy Lucy Stephenson said she withdrew her proposition to cut fuel duty after "constructive discussions" with Maclean.

Maclean said he could not discuss budget measures while they were being developed.

He said it was "possible" people might worry that there would be no relief before next year.

He said: "Of course things are much more expensive than they were three years ago, but we've seen the pace of increases reduce slightly, which is encouraging.

"The first quarter of next year is going to be where people are likely to feel the greatest pressure, and that's what we're focusing on."

The director of ATF Fuels in Jersey, Jon Best, said: "Wholesale fuel prices have reached their highest level in four months.

"While the Channel Islands are geographically distant from the Middle East, they are not insulated from the global energy market.

"Fuel is traded in an international marketplace, meaning disruptions to supply, production, or distribution anywhere in the world can have a direct effect on local wholesale costs."

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