A FUEL company has warned of the impact that Condor’s proposed freight price rises would have on its customers.
ATF director Jon Best said that the timing of the 19% increase being sought by the ferry firm “could not be worse” for the fuel industry.
He explained that the sector was also contending with the 7p increase in duty on a litre of fuel, proposed in the Government Plan, which is due to be debated on Monday.
If approved this week, that increase would come into effect on 1 January 2024 – the same day Condor proposes to impose its 18.76% price rise.
“The timing couldn’t be worse,” said Mr Best.
All of ATF’s fuel – which is approximately 30% of the Island’s total demand – arrives via Condor.
Mr Best added: “Obviously, we will look to mitigate any impact the proposed increase will have on our customers. However, at the proposed level that will be challenging.”
The ATF Fuels director said that he wrote to Condor 12 days ago when he found out about the proposed freight tariffs, but had not received a response.
He is calling for “full disclosure” and “full transparency” from the ferry company for the above-RPI increases, but described Condor’s communications as “poor” and their justification of the proposed freight tariff rise of 18.76% as “woolly”.
Mr Best said that Condor’s cost increases “will be felt by customers just trying to fill their cars or heat their homes”.
ATF also supplies fuel for logistics firms, which means that consumers will see price rises on items delivered by these companies – for example, food delivered to supermarkets by logistics firms.
Economic Development Minister Kirsten Morel said earlier this week that he “find[s] it hard to see the justification for price rises which are so significantly above” inflation levels.
In a statement on Tuesday, Condor claimed that they “have been subjected to significantly above-inflation rises in some port costs and other fees”.
