PRICE hikes introduced due to pressures stemming from the Middle East war should be reversed as soon as possible, the Jersey Consumer Council has said – amid hopes a temporary ceasefire could bring stability to costs.
JCC chairman Carl Walker said that consumers “need to be treated fairly with honesty and transparency” and that “any respite is worth its weight in gold at the moment”.
He made the comments after the US and Iran agreed a two-week ceasefire, though the situation remains volatile and it is yet unclear whether this will lead to a permanent resolution.
It marks the latest chapter in a conflict that has affected shipping through the Strait of Hormuz and triggered what the International Energy Agency described as “the largest supply disruption in the history of the global oil market”.
Last month, a number of companies in the Channel Islands announced price rises and amid the escalating tensions in Iran.
This included Guernsey-owned airline Aurigny’s introduction of a temporary £2 surcharge on flights, after fuel costs were driven up by “extreme fluctuations” linked to the conflict.
Chief Commercial Officer Philip Saunders has stated that the surcharge will remain in place “for now”, despite the drop in oil prices following the ceasefire.
Mr Saunders said: “The fuel markets remain highly unstable and currently fuel costs have been 120% more expensive for Aurigny over the last month compared to just two months ago in January 2026.
“Even as of today’s drop in prices, crude oil prices are still over 50% higher than they were before the conflict in Iran broke out and the price we purchase at is not determined by daily swings in price alone.
“As mentioned on its introduction, the TFA will make a moderate contribution to increased costs but certainly does not cover our total increase in fuel-related costs.
“Therefore, the charge remains in place and Aurigny will continue to monitor evolving fuel prices with care.”
There has also been a 5% rise in gas prices in both Jersey and Guernsey, with the Island Energy Group citing a “steep rise in the wholesale cost of gas”.
However, IEG has stated that, while it hopes prices “will begin to ease”, reductions can only be considered “when wholesale rates fall back toward pre‑conflict levels”.
“Only when sustained and genuine cost decreases occur can we safely reduce tariffs without risking instability in the future,” the utility added.
Mr Walker said that the JCC was urging businesses to bring down their prices “as soon as the wholesale price reduces for them, rather than waiting to see what happens”.
He said: “Hopefully we are now starting to see this conflict come to an end, which means that as oil passes through the Strait, the prices will begin to return to where they were before this began.”
Mr Walker continued: “Obviously, this is a temporary ceasefire, but we all hope it can be something more permanent. If that’s the case, then it’s absolutely right that questions need to be put to those businesses who have introduced emergency increases or surcharges to cope with this war.
“Ultimately, it is consumers who bore the brunt of this.”
