Alderney, one of the Channel Islands, is grappling with soaring fuel prices that have prompted a local politician to propose duty relief to ease the burden on residents and businesses.
Alex Snowdon, a member of the States of Alderney, has urged the island's government to consider reducing fuel duty as prices hit unprecedented levels. On Monday, unleaded fuel reached £2.30 per litre, while diesel climbed to £2.52, making Alderney one of the most expensive places in the British Isles to fill up.
"We normally follow the fuel duty increases the States of Guernsey do. However, the States of Alderney could, if minded to do so, set a lower fuel duty," Snowdon stated.
Local business owners are feeling the pinch. Dave Cranwell, who runs one of Alderney's two petrol stations, described the prices as "eye-watering" and attributed the surge to ongoing conflict in the Middle East. "It is the highest I've ever known it and we have no control over it," he lamented.
Simon Williams, Head of Policy at the RAC, echoed these concerns, calling petrol prices in Alderney "incredibly high." For context, the RAC Fuel Watch lists the highest unleaded price in the UK at £1.82 and diesel at £2.
The financial strain extends beyond the pump. Alexandra Rotaru of The Blonde Hedgehog Hotel expressed worry about the broader impact. "It does worry everybody because if expenses go up all businesses will be affected, and it might even be the end for some of the small businesses here," she said. "It's quite scary from a business point of view and a personal point of view."
Alderney's fuel duty rate currently stands at 90.5p per litre, significantly higher than the UK's 52.95p and Jersey's 64p. Last year, the States of Alderney collected £465,000 in fuel duty, highlighting the potential fiscal implications of any relief measure.
Chris MacGregor, managing director of Alderney Electricity—the island's main fuel wholesaler—revealed that the company is now paying 50% more to its supplier than in January. "We have no wiggle room in our prices," he admitted, emphasizing efforts to improve efficiency and explore renewable energy to reduce reliance on oil.
"The conflict in the Middle East has shown us very starkly over the past couple of weeks quite how vulnerable we are as an island to those global oil shocks," MacGregor noted. "For our own reliability and self-sufficiency, and to reduce that vulnerability, we need to move to renewables."
In response to the crisis, some sectors are already adapting. Guernsey Post, which operates in Alderney, has transitioned four of its six vehicles to electric, with plans to fully electrify its fleet. Niall Mc Swiggan, chief financial officer at Guernsey Post, explained, "Because the price of diesel is so high, the Alderney vehicles' payback period has been accelerated."
As Snowdon monitors the situation, he hinted at further support if needed: "We need to see how bad this gets, and if it does get really, really bad, then there may be a question about how much income support there is for people that are really struggling on the island."