SUSPENDING the 4p environmental duty on petrol would be a retrograde step and the government should cut other taxes to address fuel poverty, according to the former chairwoman of the Citizens’ Assembly on Climate Change.
Responding to comments made by Jersey Consumer Council chairman Carl Walker this week, Emelita Robbins said that the 4p tariff, which was introduced in 2020, was a ‘critical source of funding’ for the Climate-Emergency Fund – a war-chest set aside for projects to reduce Jersey’s carbon emissions.
Mr Walker had said that the suspension of the duty should be considered to help counter a price surge in the cost of petrol and diesel which has seen prices reach around £1.50 per litre at some filling stations.
Meanwhile, Islanders have faced the worst cost of living increases for three years, with inflation reaching 3.8% according to the most recent figures produced by Statistics Jersey.
Ms Robbins said that if the government is to step in to help consumers, other levies, such as GST or fuel duty which make up 70% of the price of fuel, should be cut first.
‘Rising fuel costs are a concern for all energy consumers and fuel poverty is a matter government must concern itself with.
‘However, I am not in favour of the 4p environmental duty on petrol being removed or reduced on a temporary or permanent basis,’ she said.
‘The environmental duty is an initial and critical source of funding for the climate-emergency fund but government will need to raise significant other sources of income in order to supplement the fund, if it is to be sufficient for achieving the purposes of the carbon-neutral roadmap.
‘Removing the environmental duty on road fuel at this point would be a retrograde step and is clearly contrary to the wider objective of discouraging use of petrol vehicles.
‘About 70% of the cost of each litre of petrol goes to the government in the form of GST, tax or duty. Government could support a reduction in road-fuel costs, therefore, on another basis, if felt appropriate,’ she added.
