Petrol and diesel prices rise to more than £1.40 per litre

JERSEY petrol prices have surged amid a UK-wide crisis which has seen the cost of a litre jump dramatically in recent weeks.

In the UK, the average price of petrol has risen to its highest point since 2012 – up to 142.94p per litre.
In the UK, the average price of petrol has risen to its highest point since 2012 – up to 142.94p per litre.

With global oil prices soaring in the wake of rising demand, some motorists have started to see the cost of petrol and diesel rise to more than £1.40 a litre at some filling stations.

The hike comes shortly after Islanders were hit with news of increases in both the cost of gas and electricity.

The cost of heating oil has also begun to rise sharply, with the price per litre having risen by around 10p for a 700-litre delivery since August.

These figures are in stark contrast to those seen during the pandemic, when aircraft were grounded, cars were left parked up and ships tied up in port. As a result, the demand for petroleum-based fuels plummeted and so did the price – with petrol falling to just over £1 per litre in April.

Carl Walker, chairman of the Jersey Consumer Council, has warned even those who do not drive will feel the pinch with the price of transporting goods from the UK and onto supermarket shelves likely to rise in response.

He said: ‘We always expected there to be a bit of a rise. But what has been worrying is the Jersey price is almost the same as the UK record price. We have always been given the impression that Jersey is cheaper, as we do not have 20% VAT, so somebody somewhere is making an awful lot of money out of Jersey drivers. It is something we are planning to investigate and look into a bit further.

‘It is just another expense along with rising energy costs – electricity is going up 4%, gas is going up again by 13% and now this. It is about an extra £15 per average family car.

‘If you have got a reasonable school run, then that is quite a big hit but this is also going to end up affecting the price of all goods that are delivered to the Island.

‘We can expect to see quite an effect on our shopping. This is not just on one-off items – this is everyday items. It is going to be a tough winter.’

In the UK, the average price of petrol has risen to its highest point since 2012 – up to 142.94p per litre.

The spike has prompted motoring organisation the RAC to call for the UK government to cut tax on fuel.

Asked whether Jersey’s government should also consider the move, Mr Walker said: ‘I know the government obviously has to recover from Covid as well and they need to consider carefully what they do.

‘But, yes, the government has the ability to pause the environmental tax and it has the ability to suspend duty, but that could create an unwelcome precedent.’

Elsewhere, market analysts have partly attributed the rise in fuel prices to a failure by some oil-producing nations to increase production in line with post-pandemic demand.

One expert has claimed that OPEC – the organisation of the petroleum exporting countries – is unlikely to do this in the near future.

Nick Crolla, head of sales and marketing at Rubis, said the business was implementing measures to help more vulnerable customers to cope with the hikes. He said that soon thousands of pounds worth of heating-oil vouchers would be available from the Salvation Army.

‘We’ve seen the wholesale fuel market increase significantly throughout 2021,’ he said. ‘One of the key reasons has been the global rebound in demand for fuel, as Covid restrictions have been easing.

‘While the fuel shortage issues in the UK have not impacted the Channel Islands, unfortunately the global increase in prices does have an impact on our supply chain.’

Top Stories

More From The Jersey Evening Post

UK & International News