The price pain
Real talk: the vibes are off for businesses in Jersey right now. With diesel prices recently topping £2 a liter, companies that rely on heavy machinery and logistics are feeling the squeeze on their bottom line. We’re talking about construction outfits and arborists who can’t just turn off their trucks or chippers. It’s giving high operational costs, and the margins are shrinking fast.
The government's play
To keep things from spiraling, the Government of Jersey is proposing to freeze fuel duty in 2027. Treasury Minister Alan Maclean is framing this as a way to avoid adding more pressure to an already stressed economy. The logic? By holding duty steady, they’re trying to stop the situation from getting worse in real terms. But here’s the catch: the government is choosing to prioritize direct support for households rather than giving businesses a direct handout.
Businesses weigh in
Kelly Keating from A&A Scaffolding Solutions said the freeze is cool, but lowkey it’s not enough. When material and freight costs are already high, a fuel duty freeze is just a band-aid if global oil prices keep climbing. Some firms are now at a breaking point where they either cut investment or start passing these costs onto you, the customer. Jonathan Le Maistre Ltd echoed the sentiment, noting that their gear—everything from stump grinders to trucks—is just thirsty for fuel, and those bills are becoming impossible to ignore.
Some are getting creative, though. Barette Plant Hire is testing the waters by adding fuel surcharges to their hourly rates. But Jeremy Phillips from the firm admits that if prices keep rising, clients might just ghost their projects entirely. It’s a classic W/L situation where everyone loses if the costs get too high.
Why it matters
When local businesses can't absorb fuel price hikes, the cost inevitably lands in your lap through higher service fees and project costs. As global oil markets remain volatile, this isn't just about diesel—it's a warning sign for the local cost of living.
