Thousands of drivers could see fuel duty slashed by 10p a litre in October under new proposals

Drivers in Jersey could see fuel duty cut by 10p per litre from October under plans aimed at easing the cost-of-living burden on islanders.

Deputy Lucy Stephenson from the Jersey Assembly has proposed a temporary reduction in fuel duty for the final three months of the year, which would save motorists around £5 when filling up a typical family car.

The politician, who represents St Mary, St Ouen and St Peter, lodged the proposal on June 17, with lower rates applying from October 1 until December 31.

In her proposition, Ms Stephenson said: "Cost-of-living pressures were the number one issue highlighted by islanders at this year's election.

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"It is no longer just those on the lowest incomes struggling to make ends meet, but spiralling costs are impacting Islanders at all ages, stages of life and those earning a seemingly 'good' wage."

The move comes as fuel prices continue to climb following tensions in the Middle East and disruption to shipping through the Strait of Hormuz, a key route for global oil supplies.

Figures from the Jersey Consumer Council show prices have risen sharply since the US and Israeli strikes on Iran in late February.

Drivers currently pay between 153.68p per litre for unleaded petrol, while diesel car owners are forking out 127.02p.

Ms Stephenson said the duty cut would provide immediate help to workers who rely on driving for their jobs, including delivery drivers, cleaners and carers.

Families who use their cars to take children to school and activities would also benefit, as would businesses that depend on vehicles to transport goods.

According to Statistics Jersey, households spend an average of £112 per week on transport, accounting for around 12 per cent of average income.

The proposal has already received backing from charity Caritas Jersey, which described the reduction as an "immediate measure" to help residents cope with rising costs.

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The charity said workers in sectors such as cleaning and care work are particularly vulnerable because they spend more time on the road.

Jersey's Consumer Council has been calling for a fuel duty reduction since April, noting that fuel prices impact everyone.

The three-month tax cut would cost the government just over £900,000 in lost revenue, according to estimates in the 2026 Budget.

However, the proposition argues that some of that loss would be offset by higher GST receipts generated by rising fuel prices.

The proposition also points to similar actions taken in other countries. Germany introduced a temporary 17-cent-per-litre fuel duty cut, while Australia halved its fuel duty for three months, saving drivers almost 19 Australian dollars on a typical tank.

Canada suspended its federal fuel excise duty until September, while the UK extended its existing 5p fuel duty reduction until the end of the year.

One option put forward to cover the shortfall would be reducing payments into Jersey's Climate Emergency Fund, which currently receives 9p from every litre of fuel duty collected.

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