Rising Fuel Prices Cost Tow‑Truck Business £10k

Rising diesel prices have added an estimated £9,000 to £11,000 in operating costs for Jersey’s tow‑truck service owner Oliver du Feu, highlighting the broader strain on island businesses that depend on frequent fuel deliveries. Du Feu’s fleet of trucks, each carrying between 80 and 120 litres of diesel, requires refueling roughly every two days, making fuel a major line item in their budgets. The spike comes amid a global oil market rally triggered by the U.S.‑Iran conflict that began in February, and a recent withdrawal of a proposed fuel‑duty cut.

Quick summary

• Oliver du Feu reports £9k‑£11k cost surge from rising diesel prices
• Trucks hold 80‑120 L and refuel every two days
• Fuel duty at 65p per litre; proposed 10p cut withdrawn
• Jersey imports 97% of goods, so global oil shocks hit local prices
• Consumer‑price‑comparison traffic doubled last year

What happened

Du Feu said the surge in fuel prices has already cost his business between £9,000 and £11,000 over the past months. He noted that the current fuel duty on the island stands at about 65p per litre, and that trucks are refilled every two days, amplifying the impact of each price increase. The owner expects the trend to continue, and he warned that he may need to raise customer charges if relief does not materialize.

The proposed 10p per litre reduction in fuel duty for the period from October to December was withdrawn after discussions in the Treasury. Treasury Minister Alan Maclean described duty cuts as a blunt tool that primarily benefits wealthier households, and said he could not discuss budget measures while they were under development. Deputy Lucy Stephenson withdrew her own proposal following constructive talks with Maclean.

How we got here

Fuel prices on Jersey have risen sharply since the outbreak of the U.S.‑Iran war in February, a conflict that has pushed global oil prices higher. Jersey imports roughly 97% of its goods, including fuel, so any increase in world crude or wholesale fuel costs is directly passed through to local retailers and consumers. The island’s geographic distance from the Middle East does not shield it from international market shocks, as wholesale fuel prices reached their highest level in four months, according to ATF Fuels director Jon Best.

In addition to the global price surge, the island’s government had planned a temporary fuel‑duty cut to ease the cost of living. The proposal, which would have reduced duty by 10p per litre between October and December, was abandoned after the Treasury concluded that it would not provide sufficient relief for the broader population. The government is expected to publish a proposed budget by the end of September, with debate slated for December, and may include targeted measures to address the cost‑of‑living pressure.

Who are the involved

Key figures in the debate include Oliver du Feu, the owner of a vehicle‑breakdown service that operates a fleet of diesel‑powered tow trucks; Treasury Minister Alan Maclean, who oversees fiscal policy and fuel duty; Deputy Lucy Stephenson, who originally proposed the fuel‑duty cut; Carl Walker, a spokesperson for the Jersey Consumer Council; and Jon Best, director of ATF Fuels, who provides market analysis for the island’s fuel sector.

The Jersey Consumer Council has highlighted that 97% of the island’s imports require fuel for transport, and that the price pressure will ultimately affect all consumers, even those who do not drive. The council’s fuel‑and‑food price comparison website has seen its traffic double since last year, reflecting growing public concern about the cost of living.

What the parties say

Du Feu said that the current fuel duty of 65p per litre is too high for businesses and that a reduction of 30p to 50p per litre would be necessary to offset the cost burden. He also warned that, without relief, he may need to increase service charges to remain viable. Maclean, meanwhile, described duty cuts as a blunt tool that largely benefits wealthier households and said he could not discuss budget measures while they were being developed.

Deputy Stephenson explained that she withdrew her proposal after constructive discussions with Maclean, noting that the government would focus on targeted measures to help people with the cost of living. Carl Walker stressed that fuel price increases affect more than just drivers, pointing out that fuel is essential for transporting goods and services across the island. Jon Best highlighted that the Channel Islands are not insulated from global energy market disruptions, and that wholesale fuel prices have reached their highest level in four months.

Explainer

Fuel duty is a tax levied on each litre of gasoline or diesel sold in Jersey, currently set at about 65p per litre. The tax is intended to raise revenue for the government and influence consumption patterns, but it also directly raises the price paid by businesses and consumers. Because Jersey imports almost all of its fuel, any increase in the world price of crude oil or in wholesale fuel costs is passed through to local retailers and ultimately to end‑users such as motorists, delivery firms and small businesses.

The proposed temporary fuel‑duty cut of 10p per litre between October and December was intended to provide short‑term relief for consumers and businesses. However, Treasury officials concluded that the cut would not sufficiently address the broader cost‑of‑living pressure and that a more targeted approach would be needed. The government’s upcoming budget, due by the end of September, may include measures aimed at easing the burden on households and small enterprises.

Impacts and why it matters

Higher diesel costs increase operating expenses for businesses that rely on frequent refuelling, such as tow‑truck operators, delivery firms and public services. The added expense is often passed on to customers, raising the price of goods and services across the island. The Jersey Consumer Council’s doubled traffic on its price‑comparison website indicates that consumers are closely monitoring fuel and food prices, and that the cost‑of‑living pressure is a growing concern.

In the broader UK context, petrol and diesel prices are the highest they have been since 2022, and the trend is expected to continue. The withdrawal of the temporary fuel‑duty cut means that businesses and consumers may face higher costs in the coming months, potentially leading to increased inflation and reduced disposable income for households.

What comes next

The Jersey Treasury will present a proposed budget by the end of September, with debate slated for December. The budget may include targeted measures to help people cope with the cost of living, but the specifics remain unclear. Du Feu said that, if relief does not materialize, he may need to raise customer charges to cover the rising fuel costs.

Analysts suggest that without a substantial reduction in fuel duty, the upward price trend is likely to persist, putting further strain on small enterprises and consumers alike. The government’s focus on the first quarter of next year as a period of greatest pressure indicates that any relief measures will need to be implemented promptly to mitigate the impact on the island’s economy.