Unleaded fuel price has fallen 6p a litre in past 12 months

According to Facebook page Guernsey Fuel & Oil Watch , which publishes regular updates of local garage prices, the average price of a litre of unleaded last January was 169.8p, but this January it has dropped to 164p.

This is despite the 3.9% increase in motor fuel duty in the 2024 budget.

But the figures also show a trend towards a wider range of pricing. Last year there was a 6.4p range between the cheapest and most expensive fuel, at 165.5p and 171.9p respectively.

But this year there is a 13p difference between the top and bottom, which were 159.9p and 172.9p.

Diesel has also seen a marked drop, from a average price of 184.5p last year to 170.2p this year, while the spread of pricing dropped from 14.4p last year to 11p this month.

The RAC's average UK price is currently 140p.

Trev’s Motorcycles owner Trevor Hockey said that wholesale price changes were the reason for the decrease over the last 12 months, adding that garages had absorbed some of the recent fuel duty increase themselves, which had put a dent in their profit margins.

‘With the cost of things like pump maintenance and insurance, margins are still slim, so a lot of garages are improving their forecourt shop offerings in terms of food.’

He said that it was impossible to know how prices would change over the course of this year. Current conflict in the Red Sea between Yemen’s Houthi rebels and UK and US naval forces was another reason for unpredictability.

‘If the rebels are firing at ships carrying crude oil and making their way up to the Suez Canal then that makes the market a bit more difficult.

‘I never know whether to keep my tanks full or empty, the price of crude oil doesn’t tell you everything, and there’s the government tax on fuel as well which makes up about 50% of the overall cost now.’

Le Mont Saint Garage joint managing director Michael Beausire was pleased that prices had come down over the last 12 months, but said that the garage had had to pass on the recent fuel duty increase to its customers.

‘The price customers pay is obviously tied to what we have to pay for the fuel in the first place.

‘It’s nice to be able to offer a lower price, but when duty goes up we have to deal with the increase.’

He hoped that prices would continue to come down this year, but did not think any potential drop would be a large one due to the duty increase.

‘Everything going on around the world has an impact on price, we have seen in recent years with events like the war in Ukraine that often prices will go up and not come down very quickly.

‘I wouldn’t like to say what will definitely happen but of course I hope that they come down.’