In the last two weeks, companies across the Channel Islands have announced price rises and blamed it on the conflict in the Middle East – which caused the price of oil and gas to rise dramatically.
So you’d think now oil and gas prices have “plunged” following the USA and Iran’s temporary cease fire, they’ll go down, right?
Think again – because apparently it’s not that simple.
Express contacted Aurigny, Guernsey’s airline, and Island Energy Group (IEG) – which has the monopoly on gas for both main Channel Islands – to ask if their recent price hikes would be reversed.
In both cases, they said no.
Risks future instability
Last month gas prices in both Jersey and Guernsey went up 5%, with IEG blaming the “steep rise in the wholesale cost of gas” caused by the conflict.
However, now oil and gas prices have dropped IEG will not be reversing the price rise yet, despite having said it would be “temporary”.
An IEG spokesperson told Express: “While we sincerely hope that prices will begin to ease, the reality is that 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.”
Still more expensive
Aurigny put a £2 surcharge on flights last month, blaming it on “heightened global instability”.
However, Chief Commercial Officer Philip Saunders told Express the surcharge will remain in place “for now”, despite the drop in oil prices.
Mr Sauders 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.”
Global politics felt locally
The Channel Islands are more than 4,500 miles from Iran’s capital Tehran.
But, despite the distance, the conflict has had a huge knock-on effect here.
As well as increased prices on gas and flights, fuel prices have risen locally, with one Guernsey petrol station station introducing rationing.
Meanwhile, an Alderney politician called for relief on fuel duty to help offset rising costs.
Alderney Electricity Limited also recently imposed a price rise, blaming “global volatility”. The utility put tariffs up by 9.8% on 1 April saying prices had been held artificially too low for too long, sheltering bill payers from the effect of the covid pandemic, the Russian invasion of Ukraine, and the recent conflict in the Middle East.
However, it isn’t all bad news for Channel Islanders.
None of the islands’ main ferry companies, including DFDS and Brittany Ferries, have raised their prices because of the conflict.
Meanwhile, rival airline Loganair – which was unsuccessful in its bid to provide inter-island flights earlier this year – said it had no immediate plans to raise prices, despite the war.
Guernsey Electricity said it had managed to “shelter” islanders from most of the “price volatility” over recent years because it imports 90% of the island’s electricity from Europe and through “price hedging arrangements”.