Fuel providers in the Channel Islands are seeing pump prices steadily decline, with two of the largest suppliers—Rubis and ATF Fuels—reporting that recent drops in wholesale costs are now filtering through to local forecourts in Guernsey and Jersey, according to BBC Business. The price of petrol and diesel had reached an Iran war peak in May before beginning to fall. In the last fortnight, global oil prices have returned to levels not seen since before the Iran war.
Price Reductions Filter Through
The RAC reported the fastest monthly fall in diesel prices since 2000 in June, with the cost falling by 17p a litre, BBC Business noted. Petrol prices have also fallen, although with a more modest drop than diesel. A spokesperson for Rubis said that if wholesale prices continue to fall, the company expects "to see further reductions passed on over time." ATF Fuels added that costs have been falling since the highs of March and April and consumers would have seen this reflected at the pumps.
Supply Chain Dynamics
Rubis stated that its priority has been to "maintain secure and healthy fuel stocks" but as stocks are replaced with new deliveries purchased at lower wholesale prices, those reductions will "progressively flow through the supply chain." The company said it has already seen prices fall for petrol and diesel, and these reductions are being passed on to forecourts and ultimately consumers.
ATF Fuels highlighted that while crude prices have fallen significantly, the cost of refined products such as diesel, petrol, and kerosene have been slower to fall. This is primarily due to infrastructure damage caused by the war in Iran and the costs associated with refining crude, the company said.
Consumer Council Advises Caution
In an online post, the Jersey Consumer Council welcomed the reduction in prices but encouraged islanders to "shop around." It also cautioned that prices should not be expected to drop as quickly as they rose.
"When wholesale prices rise, retailers typically pass these increases on swiftly. In contrast, when wholesale costs fall, reductions at the pump tend to happen more gradually. This is partly due to consumer behaviour, as drivers are more likely to actively compare prices when costs are rising than when they are falling."
The fall in prices comes after one Jersey politician proposed reducing fuel duty for three months to help islanders with the cost of living.
Key Price Movements
| Metric | Details |
|---|---|
| Diesel price drop (June) | Fastest monthly fall since 2000; cost down 17p/litre |
| Petrol price trend | Modest drop, less than diesel |
| Global oil prices | Returned to pre-Iran war levels in the last fortnight |
| Wholesale cost decline | Filtering through to forecourts, further reductions expected if trend continues |
Future Outlook
Both Rubis and ATF Fuels expressed cautious optimism that if global wholesale prices continue to fall, further reductions will be passed on to consumers over time. The pace of retail price declines may be moderated by the lag in replacing higher-cost inventory and the lingering effects of Iran-related refining infrastructure damage. The Channel Islands fuel market will be closely watched for additional pump price adjustments as wholesale markets evolve.
