THE cost of fuel at forecourts in Jersey has not yet been affected by the war in the Middle East but one operator has told its customers that prices may change significantly – even daily – while the conflict persists.
ATF said it would be “completely transparent” with its heating oil and road fuel customers, saying it would only pass on any rises if it had to.
Director Jon Best told the JEP: “The key message is that there is no need to panic: there is no information to suggest any disruption to supply but because of volatility in the wholesale market.
“However, we are being completely transparent: the volatility will remain as long as the activity in the Middle East remains.
“The market will go up and possibly down on a daily basis. Our model is very different to the other suppliers, in that we operate a ‘just in time’ supply chain, meaning we are aligned with the daily market rather than storing fuel at La Collette.
“This means we have a live price which is more volatile as a result.”
In a message to customers, ATF said that there was no need to forward purchase oil and it would only pass on increases where its ‘purchasing mechanisms’ were immediately impacted and its stocks of fuel dictated.
“That is why there has already been an increase in our domestic heating oil prices,” it added.
“Our forecourt prices remain unchanged at present. These will only be reviewed when current stock holdings are replenished,” ATF said.
Unlike ATF, Rubis Channel Islands stores fuel at La Collette.
Its head of marketing, Nick Crolla, said: “Global fuel prices fluctuate daily as part of normal market conditions. We actively manage this volatility to help provide pricing stability for our customers and maintain strong, reliable supply chains.
“At present, it is business as usual with no supply concerns. While some price movement is expected in line with global trends, current prices remain among the lower levels seen over the past four years. We will continue working to minimise any impact on our customers.”
Meanwhile a spokesperson from gas supplier Islands Energy Group said: “It is true that in the last couple of days, following the commencement of hostilities in the Middle East, the spot commodity price for gas has been very volatile and has risen significantly.
“Clearly, we are unable to predict how long this volatility will last and what level the gas commodity price will eventually settle to. We are keeping the situation under constant scrutiny and if the recent dramatic rise in gas prices is maintained for any length of time, then we will reluctantly have to look at our pricing structure.”
Global prices for oil and gas have risen sharply since the United States and Israel began bombing Iran on Saturday. Brent crude has risen by 15% while liquified petroleum gas has increased by more than 50%.
However, at this early stage of the conflict, the longer-term implications for consumers are unknown.
