A number of Islanders have recently asked us why heating oil prices in Jersey are higher than those in the UK, and why local prices are not falling at the same rate as the UK.
The oil market remains highly volatile, and prices continue to be influenced by uncertainty in global energy markets. Until the situation in the Middle East becomes more stable, fluctuations are likely to continue.
Local heating oil supplier ATF Jersey have provided the following explanation for the difference between Jersey and UK fuel prices:
“The primary reason is due to the additional costs associated with supplying and storing fuel on an island location. Whereas the UK benefits from having extensive infrastructure with refineries, terminals and depots spread across the network, Jersey is solely reliant on importation by vessel.
"This allows UK suppliers to be more flexible and reactive to changes in the wholesale market and adjust their prices accordingly. Jersey can’t do that.
“In Jersey, fuel is stored at the price it is brought to the island at, and with a market drop such as has happened recently, suppliers are unable to react until replacement product is imported.”
The Jersey Consumer Council will continue to monitor fuel prices and keep consumers informed.
Islanders looking for the best available prices are encouraged to compare suppliers using Prices.je.
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