New motoring taxes – including charges for owning a car or even using the roads – are being considered as the government prepares for a decline in fuel duty revenues.
The warning comes as ministers formally shelve plans to ban the importation of new and second-hand petrol and diesel vehicles following major public backlash.
Within the announcement, Treasury Minister Elaine Millar revealed that officials have already “developed options” to replace the tax income currently generated from fuel.
“I am keenly aware that fuel duty revenues will decrease as motorists switch to more efficient forms of transport,” she explained.
“During my term in office, we have developed options for replacing fuel duty, including looking at a vehicle ownership charge and a road usage charge.”
Deputy Millar said the government had been “carefully monitoring” fuel consumption and duty receipts, which are in “steady decline”, and had paused work on replacing the tax as a result.
However, she said “there is an opportunity to revisit that work – as well as looking at other charges on vehicles and transport, like vehicle emissions duty”.
The minister added that “no single solution will please all road users” and that the next government is expected to “consider these matters together”.
The now-abandoned plan to end the importation and registration of petrol and diesel vehicles “new to the island” from 2030 was part of the island’s Carbon Neutral Roadmap, approved by the States Assembly in 2022.
But a consultation involving more than 5,000 islanders – including over 2,000 detailed survey responses – revealed “substantial public and organisational opposition”.
Environment Minister Deputy Steve Luce said: “It is very clear from the consultation findings that the majority of respondents were not in favour of the proposed phase-out.”
Islanders raised repeated concerns about affordability, warning that electric vehicles remain out of reach for many households, as well as highlighting limited charging infrastructure and uncertainty over the island’s readiness for such a transition.
Many also objected to what they saw as a loss of consumer choice, with respondents saying they “wanted to retain freedom of choice” when selecting vehicles.
Deputy Luce said key systems – including public charging networks – are “not yet sufficiently mature”, making it premature to impose restrictions.
Instead of introducing what he described as “costly” new legislation, the government will now rely on changes already under way in the UK, where the sale of new petrol and diesel cars is due to end in 2030.
“As our vehicles are predominantly sourced through the UK market, our local motor traders will not be able to sell brand new pure petrol or diesel cars at that stage, although second-hand will still be in circulation,” explained Deputy Luce.
“While I recognise that this decision may slow the rate at which we can reduce our road transport emissions, this is imperative to safeguard a just transition for local motorists, who might otherwise have been priced-out of having access to affordable vehicles.”