The island is bracing for significant fuel price increases in the coming days as global events in the Middle East begin to feed through to local supplies, Chief Minister Alf Cannan has told Keys.
In an urgent statement to members, Mr Cannan said that while the island had been relatively shielded until now due to the infrequent way supplies arrive, upward pressure on international fuel markets would result in local price rises this week.
“There is no fuel supply shortage on the island, and there are currently no threats to our supply chain,” Mr Cannan said. “Both major fuel suppliers have confirmed that deliveries remain on schedule, and refinery loadings are proceeding as planned, with no foreseen disruption to physical supply.”
The Chief Minister said the Council of Ministers was monitoring the situation through the economic and national strategy board, which met on Tuesday morning and will meet again on Wednesday.
Concern
“These price increases will cause concern for many,” Mr Cannan said. “Of particular concern will be the potential significant increases in home heating oil for those in our community who rely on this method.”
Fuel suppliers have confirmed they will monitor vulnerable customers, with Mr Cannan stating they are “prepared to extend credit and to look at ways in which they can support those potentially who are most exposed”.
Rob Callister urged government to consider reduced bus and rail tickets, as was done during the Ukraine conflict, suggesting free transport for under-25s and ensuring over-60s retain free access.
However, the Chief Minister cautioned against “knee jerk” reactions, noting the situation could be prolonged.
“We need to be responsible in our decision making, and we are conscious that the pressures we are likely to face could be here for a prolonged period of time.”
Heating
Dr Michelle Haywood raised concerns about home heating oil customers who may “self-disconnect” by simply not ordering fuel when unable to afford it.
She asked how vulnerable customers without formal supplier relationships could be identified.
The Chief Minister said that government would need to “define particularly those who are our home heating oil” when considering support.
On wider economic impacts, Mr Cannan confirmed discussions were taking place with the Steam Packet Company regarding potential fuel surcharges.
“It’s pretty clear that there will be increases. It doesn’t take a rocket scientist to know that if fuel prices increase, then things like food, for example, will increase.”