UNCERTAINTY over oil costs triggered by a re-escalation of hostilities in the Middle East have left Island motorists facing the “real possibility” of further fuel price hikes, a consumer organisation has warned.

Hope that there would be some relief at the pumps following the signing of a memorandum of understanding between the US and Iran earlier this summer was subsequently set back by renewed strikes.

While a notable drop in oil costs was reported yesterday following comments by US President Donald Trump that new negotiations would begin this week, a spokesperson for Iran’s Ministry of Foreign Affairs has disputed claims that talks are taking place between the two countries.

UK roadside assistance and vehicle insurance firm RAC recently warned that the average price of petrol had reached its highest since November 2022.

It comes not long after the International Energy Agency cautioned that a deterioration of peace efforts could drive prices higher through further disruption of traffic through the Strait of Hormuz.

Data tracked by the Jersey Consumer Council’s Prices.je website showed Island forecourt prices starting to rise again towards the end of last month.

A JCC spokesperson said: “We are keeping a close eye on the situation but, given the continued instability of the situation in the Middle East, further rises in fuel prices remain a real possibility after a steady couple of months.”

They continued: “What we did notice during the last surge in prices was that there were no predictable patterns from the retailers.

“The table fluctuated daily in terms of where the cheapest fuel was available, so Islanders should continually shop around using prices.je.”

A proposition calling for a 10p cut in the excise duty payable on a litre of fuel is due to be debated by States Members next month.

The cut has been proposed by Deputy Lucy Stephenson, who cited the benefit of providing “immediate relief” to Islanders in light of “spiralling costs exacerbated by the ongoing conflict in the Middle East”.

If approved, it would be introduced on 1 October for a period of three months.

The JCC spokesperson also highlighted that, in addition to the uncertainty over fuel costs, there have been warnings about food price increases “as suppliers begin to be impacted by the weather conditions”.

The National Farmers’ Union has raised concerns that the hot and dry conditions being seen this year could mean a shortage of some food products.