JERSEY motorists are finally beginning to see some relief at the pumps after global oil prices tumbled back to pre-conflict levels – but a Deputy is arguing that calls to slash fuel duty should still be taken seriously.
Fuel prices have started to fall across the Island after wholesale oil markets retreated as shipping resumed through the Strait of Hormuz and diplomatic efforts between the United States and Iran gathered pace.
Data tracked by the Jersey Consumer Council’s Prices.je website shows forecourt prices edging down in recent weeks, with further reductions expected if lower wholesale costs continue to feed through.
The decline follows weeks of volatility triggered by conflict in the Middle East, which briefly pushed oil prices sharply higher amid fears Iran could disrupt traffic through the Strait of Hormuz – the route through which around a fifth of the world’s oil supply passes.
Since the US and Iran signed a Memorandum of Understanding aimed at ending hostilities, oil prices have fallen back to around where they were before the conflict, although analysts have warned markets remain sensitive to any renewed tensions.
A Jersey Consumer Council spokesperson told the JEP: “We saw the very first dips in petrol prices about two weeks ago, just before the latest peace deal was announced, so it is possible that they had peaked.”
They continued: “Now that a firmer peace deal seems in place, and that we have seen the wholesale price of oil come down, we will hopefully see that start to filter through to the pumps in Jersey soon.
“This will not only be good news for drivers but also consumers as a whole, as almost everything we buy is impacted by the cost of fuel.”
Despite the improving picture, Deputy Lucy Stephenson contended that Islanders have been paying “significantly higher prices” since the start of the Middle East conflict months ago and that it was “time we take some action”.
Earlier this month, the St Mary, St Peter and St Ouen representative lodged a proposition calling for a 10p cut in the excise duty payable on a litre of fuel.
If agreed by States Members at their first regular meeting in mid-July, the cut would be introduced on 1 October for a period of three months.
“It is important at this stage that we still go ahead and have the debate,” Deputy Stephenson told the JEP, noting that “it will be up to States Members to have that debate in the most up to date global context that we have available”.
Deputy Stephenson added that it was “great to see prices start to come down”, but also pointed out that “things are changing on an almost daily basis”.
Even if the relief continues, Deputy Stephenson said that Islanders could do with some relief on their wallets after having been squeezed over a prolonged period.
“If we went ahead with [the cut] and October comes and the prices have dropped significantly, it can help to offset some of the extra costs people have had over many months.”
“[It is] time we take some action,” she added.
