A rise in cost of fuel 'likely'
RISING fuel costs are having a 'continued inflationary impact' on the local economy, the president of the Guernsey Motor Trades Association has warned, as he said crude oil prices could rise by a further 15% 'within the year'.
Guernsey's annual inflation rate reached 2.9% at the end of March – the greatest percentage increase in almost five years – with an 8% annual rise in the cost of fuel and lighting the most significant result of inflation.
At the start of the year, an agreement came into effect between the Organisation of Petroleum Exporting Countries (Opec) and non-member countries, with the aim of reducing the production of oil by up to 1.2 million barrels a day.
Andrew Sparks, president of the GMTA, said the effects of this agreement on the market were already visible and were causing fuel prices to rocket.
'In March, 10 of the 21 countries who agreed to this reduced their output to 1.8 million barrels a day,' he said.
'If this continues pump prices will continue to rise and have an inflationary impact on Guernsey's local economy.
'The current crude price is $49.62 per barrel, but it is forecast to rise to $57 within the year.'
