Channel Island fuel costs now beat UK pump prices

Fuel campaigners are calling for action to help motorists after prices at pumps in the Channel Islands rose higher than the UK.

Motor fuel duty is currently 80.9p per litre in Guernsey and 63.89p in Jersey, compared to 52.95p in the UK.

While those differences are narrowed somewhat given VAT is added to all components in the fuel supply in the UK and GST to the same in Jersey, the unit costs of running a forecourt are more expensive here.

Consumer groups say it is the first time they have seen figures like this in the seven years since they started monitoring costs.

Carl Walker, Head of Jersey's Consumer Council, said: "Islanders will often recall seeing signs at certain petrol stations saying this is the last stop before the ferry for people to fill up before they go back to the UK now it's actually almost the other way round.

"People are filling up before they return to Jersey because it's cheaper over there".

Carl Walker says people are filling up in the UK before returning to Jersey because it's cheaper. Credit: ITV Channel TV

Back in 2006, Guernsey boasted the lowest fuel prices in Europe; a complete turn around from what islanders are experiencing today.

One of the reasons behind the rise is shipping costs, which have increased alongside the fuel to power vessels such as the Commodore Goodwill which transport it.

It has left suppliers claiming there is no other option but to pass that cost onto the customer.

Fuel supplier Jonathan Best said: "We can only do so much. We can't impact the overall market something needs to change fundamentally with the structure of the market.

"Things aren't easy and it's an added cost to the overall cost of living".

However, Jersey's government has told ITV Channel TV that a reduction will not happen in Jersey.

Constable Richard Vibert, Jersey's Assistant Minister for Treasury and Resources, said: "Reducing fuel duty is not necessarily the best way of helping the lower paid.

"We've already put measures in place with the community cost bonus, reduced social security contributions.

"I can categorically say that a cut in fuel duty is not the answer."

Fuel costs in the Channel Islands are now more expensive than the UK. Credit: ITV Channel TV

Guernsey's government is holding a similar stance.

A spokesperson for the Policy & Resources Committee said: "The States is very aware of higher inflation across many areas at the moment which, while lower in Guernsey than the UK or Jersey, of course has a significant impact on many islanders. 

"It is important to look at the impact of higher costs, and measures government can use to support islanders.

"Where fuel suppliers, or any business, sees wholesale prices come down, we would very much encourage them to reflect that drop in price to their customers as quickly as possible, which will help to slow the cost of living increases more quickly."