Rising fuel prices pressuring Jersey business margins

Some businesses in Jersey have voiced concern over the impact of climbing global fuel prices. Locally and across the UK diesel has recently exceeded £2 per litre, prompting international efforts to ease supply pressures. The Government of Jersey has proposed freezing fuel duty in 2027 as a measure to help alleviate cost‑of‑living burdens.

A&A Scaffolding Solutions welcomed the proposed freeze but warned it would bring only limited relief if worldwide fuel prices keep rising. The company noted that fuel duty had already been frozen from 2023 to 2025 before being adjusted with inflation in 2026, and the 2027 budget suggests another freeze.

Officials said maintaining the current duty rate would avoid extra costs for households and businesses that depend on transport, offering continued support while many islanders remain under financial strain. Nevertheless, several local firms worry the freeze will not be enough to counterbalance global price increases.

Kelly Keating of A&A Scaffolding Solutions said rising diesel prices are a real concern, especially when added to other increasing costs on the island. She explained that construction is feeling the pressure because the firm relies on diesel for machinery, vehicles and deliveries, which directly raises the cost of carrying out work. Alongside higher material, freight and operating expenses, this squeezes margins and makes it harder to price projects confidently. She added that a duty freeze would be welcome but would offer limited relief if global fuel prices continue to climb, noting that the cumulative impact could affect investment, project viability and ultimately the prices customers pay.

Jonathan Le Maistre Ltd, a tree‑surgery business, also reported a noticeable impact. Darren Hopkins said the firm depends on vans, trucks, chippers, stump grinders and other fuel‑heavy machinery. Higher diesel prices will raise operating costs, reduce margins on jobs and make it more difficult to absorb expenses without passing some on to customers.