---
title: "Jersey businesses warn fuel duty freeze offers limited relief"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2026-10-17T07:27:26+00:00"
modified: "2026-10-17T07:27:26+00:00"
date: 2026-10-17
canonical: "https://stockmark.it/fuel-costs-squeezing-margins-for-some-businesses/"
category: "Business"
categories: ["Business", "Companies"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/10/jersey-businesses-warn-fuel-duty-freeze-offers-limited.png?fit=1536%2C1024&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Jersey businesses warn fuel duty freeze offers limited relief

**Published:** October 17, 2026
**Author:** Stockmark.IT Website
**Categories:** Business, Companies
**Featured image:** ![Jersey businesses warn fuel duty freeze offers limited relief](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/10/jersey-businesses-warn-fuel-duty-freeze-offers-limited.png?fit=1536%2C1024&quality=80&ssl=1)

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Businesses in Jersey have expressed concern that a proposed freeze on fuel duty for 2027 will provide only limited relief against rising global diesel prices. The island government has suggested maintaining the current rate of duty to help ease cost-of-living pressures, a move welcomed by some operators but criticised by others who argue it is insufficient to offset broader market increases. Diesel prices in Jersey and the United Kingdom recently exceeded two pounds per litre, prompting calls from industry leaders for more substantial support to protect margins and project viability.

The Government of Jersey has outlined its intention to freeze fuel duty in the proposed 2027 budget. Officials stated that keeping the duty at its current level would help avoid additional costs for households and businesses that rely on transport. This decision follows a period where fuel duty was frozen from 2023 to 2025, before rising in line with inflation in 2026. The government asserts that this approach provides continued support at a time when many islanders remain under financial pressure, aiming to mitigate the impact of price rises by reducing the level of duty in real terms.

However, sector representatives argue that the cumulative impact of rising costs is becoming difficult to manage. Kelly Keating of A&A Scaffolding Solutions stated that rising diesel prices are a significant concern, particularly when combined with other increasing costs across the island. She noted that the construction industry is taking a hard hit, as reliance on diesel for machinery, vehicles, and deliveries puts direct pressure on the cost of carrying out work. Alongside rising material, freight, and operating costs, these factors are squeezing margins and making it harder to price projects with confidence. Keating warned that while a duty freeze is welcome, it offers limited relief if global fuel prices continue to climb, potentially affecting investment and project viability.

Similar concerns have been raised by other service providers. Darren Hopkins of Jonathan Le Maistre Ltd, a tree surgery firm, said that increased diesel prices would raise operating costs for their vans, trucks, and specialist machinery. This reduction in margins makes it more difficult to absorb costs without passing some of them on to customers. Hopkins described continued increases as a concern for both his business and the wider industry. In contrast, Jeremy Phillips of Barette Plant Hire reported that the issue has not been too severe so far, though the firm is adding fuel surcharges to hourly rates. He cautioned that if prices keep rising, customers may cease carrying out their projects.

Treasury Minister Alan Maclean responded to these concerns by explaining that support is being targeted directly at consumers rather than expecting businesses to absorb costs. He stated that the government did not favour a reduction in fuel duty because it was not targeted. Instead, the budget prioritises targeted support for families and those struggling the most. Maclean noted that fuel prices are largely driven by global markets and geopolitical events outside Jersey’s control. The government’s role, he said, is to avoid adding further pressure where possible, with the proposed freeze helping to mitigate the impact of price rises.

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