Understand
Fuel costs squeezing profit margins for businesses in Jersey
Overview
Rising global fuel prices, with diesel recently exceeding £2 per litre, are squeezing profit margins for businesses in Jersey, particularly in the construction and trade sectors. While the Government of Jersey has proposed freezing fuel duty in 2027 to help ease cost-of-living pressures, some local business representatives warn that this measure will provide only limited relief if global prices continue to climb.
Key points
- Diesel prices in Jersey and the UK have recently topped £2 per litre.
- The Government of Jersey has proposed freezing fuel duty in the 2027 budget to help households and businesses.
- A&A Scaffolding Solutions stated that rising diesel costs, combined with higher material and freight expenses, are squeezing margins and making project pricing difficult.
- Jonathan Le Maistre Ltd, a tree surgery firm, reported that increased fuel consumption for machinery and vehicles is raising operating costs.
- Some businesses, such as Barette Plant Hire, are managing by adding fuel surcharges to hourly rates, though ongoing price hikes threaten customer projects.
- Treasury Minister Alan Maclean stated that fuel prices are driven by global markets and that the budget focuses on providing direct support to consumers rather than reducing fuel duty.