Two deputies want to see the rate of fuel duty cut in real-terms next year.
Deputies Jayne Ozanne and Liam McKenna have proposed reducing the tax by 1% in and amendment to the States’ 2026 budget.
But the pair say a cut is justified to “help mitigate the impact of the cost of living crisis amongst those who are in the lower financial quartile in our society, who are the most likely to drive less fuel efficient vehicles and the least likely to be able to afford electric vehicles.
In their proposal, the duo claims, “It focuses on addressing urgent social and economic challenges, including helping to tackle the cost-of-living crisis felt most keenly amongst vulnerable and low-income households, through improving both energy access and affordability and so helps to ensure a fair and proportionate transition to greener technologies.”
If it is approved by the States it would wipe out £400,000 from the revenue expected to be raised in P&R’s proposed budget plans.
Petrol and gas oil duty would be cut from 90.5p to 88.8p a litre, while diesel would be cut from 60.5p to 58.8p per litre.