Proposal to reduce excise duty on road fuel
This content has been automatically generated from the original PDF and some formatting may have been lost, therefore it should not be relied upon to extract citations or propose amendments. Please see the PDF for the official version of the document.
WQ.131/2026
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES
BY DEPUTY L.D. CARPENTER
QUESTION SUBMITTED ON MONDAY 6th JULY 2026
ANSWER TO BE TABLED ON MONDAY 13th JULY 2026
Question
"Further to the proposal in P.60/2026 (Reduction of Excise Duty on road fuel) to reduce excise duty on road fuel, will the Minister provide an update of the estimated cost to public finances of the three-month period that has been proposed; and will he advise what assessment, if any, has been made of how the change would affect lower, middle and higher-income households?"
Answer
The fiscal cost of a 10p reduction in fuel duty for three months was correctly stated in P.60/2026 as £900,000. As forecast fuel consumption has not changed and fuel duty is applied as a fixed rate per litre regardless of fuel price, this remains the expected cost.
Using Statistics Jersey's Jersey Household Spending 2021/2022 report adjusted to 2026 fuel price levels, household spending on petrol, diesel and other motor oils ranges from £15.50 per week for households in the lowest income quintile, £22.50 per week for the average household, and £28.50 per week for those in the highest income quintile.[1] As a result, the financial benefit of a 10p reduction in fuel duty would be greater for higher-income households, with estimated savings of £1.10 per week for the lowest-income households, £1.60 for the average household, and £2.00 for the highest-income households. The table below summarises estimated weekly fuel spending and savings by income group.
Household income quintile | Ave. spend on petrol diesel per week (2021) | Ave. spend on petrol diesel per week, adjusted to 2026 | Effect of 10p/litre reduction in fuel duty per week |
Lowest quintile | £12.00 | £15.50 | £1.10 |
Average household | £17.40 | £22.50 | £1.60 |
Highest quintile | £22.00 | £28.50 | £2.00 |
[1] Household fuel spending estimates have been calculated using the increase in the RPI fuel index over the period Q1 2022 to Q1 2026.