JERSEY’S Emergencies Council was convened as ministers continue tracking the impact of rising oil prices stemming from the war in the Middle East and “consider available options”.
The update from Chief Minister Lyndon Farnham comes just a few days after the International Energy Agency warned that the conflict “has triggered the largest supply disruption in the history of the global oil market”.
As the US-Israeli campaign against Iran enters its fourth week, shipping through the Strait of Hormuz – which normally carries around a fifth of the world’s oil – remains severely restricted.
Ahead of chairing a meeting of the UK’s Cobra committee yesterday, Prime Minister Sir Keir Starmer said that his government was prepared to explore “every lever available” to mitigate the impact on energy supplies and the wider economy.
The IEA, which comprises 32 member countries, has outlined a number of ways households can “relieve the strains on affordability” in its newly-published ‘Sheltering from Oil Shocks’ report.
This included encouraging car sharing, driving at lower speeds and greater use of public transport, as well as working from home where possible.
“The loss of supply is having significant impacts in global markets, pushing up prices for crude oil above $100/barrel, and leading to much higher prices for some refined products – notably diesel, jet fuel and liquefied petroleum gas,” the report stated.
“Concerns are growing about the impacts of higher prices on households, businesses and the broader economy.”
Data tracked by the Jersey Consumer Council’s price comparison website Prices.je has shown heating oil and forecourt prices are on the increase, with one supplier telling the JEP last week that current market volatility was “unlike any I’ve seen before”.
Treasury Minister Elaine Millar has previously stated that, while “there are things government could do” in relation to fuel duty and GST, it was in a “difficult
phase” given the proximity to the pre-election purdah period.
Speaking to the JEP yesterday, Deputy Farnham said: “The Island’s supply chains remain stable, and we are monitoring how changes in oil prices are beginning to affect the cost of living.
“I chaired a meeting of the Emergencies Council on Friday to discuss the situation and consider available options, as we continue to keep a close watch.”
