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The Government has ruled out cutting fuel duty in light of soaring pump prices following Russia’s invasion of Ukraine.
Between 1 March and 15 March alone, average petrol prices rose from 139.9 pence per litre to 149.9p, while diesel went from 140.9p to 153p.
In the States Assembly on Tuesday, Treasury Minister Susie Pinel said that cutting fuel duty across the board would disproportionately benefit higher income islanders, who tend to own more cars than lower income households.
She added that the Treasury was looking at other options to support islanders on lower incomes but reducing duty was not the way to go.
Any change in duty or taxation would require an emergency budget amendment, which would need to be debated during a future Assembly meeting, she said.
The Deputy also ruled out any sector-specific duty cuts, including support for fishermen, who Deputy Steve Luce said were being disadvantaged by state subsidies being given to French competitors.
Recently, the Jersey Consumer Council called on the Chief Minister to urgently reduce the duty on motor fuel by 9p per litre at the till.
External Relations Minister Ian Gorst, has suggested going further with a cut of 10p before the June election.
The Consumer Council has also suggested giving households £100 each towards an energy bill of their choice, and postponing the proposed reduction in the de minimis GST level which will make online shopping more expensive.
They also suggested making bus journeys free to town or providing free parking on Saturdays, explaining: “This will save up to £4.80 per return fare into St Helier – the equivalent of the amount of GST spent on almost £100 of shopping, or £2.70 per car driver.”
Deputy Pinel said that the Treasury were considering all of these options.
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The Jersey Consumer Council has created the following price comparison tools to help islanders compare the costs of different essentials...
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