In the face of near-record oil prices, caused by the impact of the United States’ war with Iran, Deputy Rob Curgenven will propose retaining the current levels of duty on all motor fuels, rather than increasing them by inflation. Meanwhile, Deputy Neil Inder’s focus is on so-called ‘white diesel’ – the fuel which is overwhelmingly used by commercial vehicles and so its cost tends to be passed on to the wider economy.
Deputy Curgenven stressed that his amendment was being brought not just because of the current sky-high fuel prices, but also due to wider cost-of-living pressures.
‘The introduction of GST will only add to that burden by driving up prices across the board. At a time when many families are struggling to get by, the focus should be on easing pressure, not increasing it. Maintaining “real value” sounds neutral, but it is ultimately a choice to increase duty in line with inflation every year. That means higher taxes, without a separate decision on whether they are justified.’
Deputy Curgenven admitted that his amendment would mean nearly £1m. less in tax coming into the exchequer next year than under Policy & Resources’ proposals. Despite this, he said he did not feel the need to propose any compensating measure to balance the budget, saying this figure did not represent an actual loss.
‘Duty stays where it is today and the revenue keeps coming in. P&R say their package, including GST, puts the States’ finances on a sound footing. If that’s true, a fuel duty freeze is easily affordable.’
He said his amendment was about ensuring that the burden did not fall hardest on those with the fewest options, saying many islanders relied on their vehicles every day to work.
‘They are providing services and supporting their families. They deserve practical support, not additional financial pressure.’
Deputy Inder is preparing two amendments focused specifically on ‘white diesel’.
The first is a simple freeze in the duty on this fuel, which is used mainly by commercial vehicles. He is also mulling over placing a more far-reaching amendment, which would actually reduce the duty on this type of diesel by 5p a litre.
Duty on petrol and road diesel is currently 90.5p per litre. Petrol is selling at the pump for between £1.79 and £1.91 per litre, with diesel at £2 a litre.
The Budget proposal would see the duty per litre increase by 3.9p per litre.
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