Job cuts could fund diesel price drop says deputy

A Guernsey deputy has said leaders could fund a fuel price drop for drivers by cutting civil servant posts.

Deputy Neil Inder said he plans to submit two amendments around the cost of fuel in relation to the upcoming States budget amid "exceptional circumstances due to global events".

The proposed amendments are to freeze fuel duty and to also cut the cost at the pumps of white diesel - used by cars, trucks and buses - by 5p.

Asked how the States would fund this, he added: "What the States needs to start looking at properly is reducing the size of the civil service."

In the 2027 budget, fuel duty is due to increase by inflation (4.3%) from 1 January 2027, increasing duty rates to 94.4p per litre.

With the war continuing in the Middle East, fuel prices have increased across Europe, with diesel prices hitting an all-time high, according to the RAC motoring organisation.

It comes as fuel prices recently hit record highs across Guernsey, and the price of diesel hit £2.00 per litre in the UK.

White diesel, used for regular road vehicles, is subject to the standard fuel duty rate, while red diesel, used in industries including farming and fishing, is a rebated fuel that is duty-free or has a heavily reduced tax rate.

"I think we've got to realise what's happened to the world diesel prices," said Inder.

"There's been an unreasonable spike in diesel prices over the last three or four months and it really is set to get worse."

He said this would inevitably impact the cost of living and added: "Whether we like it or not diesel really does make the world go round and the wheels turn in Guernsey."

Inder said under "normal circumstances" he would probably go along with the P&R proposal to "up duty on the diesel", but said the global climate called for greater consideration.

"In reality the biggest cost to the States is the amount of people we employ," he said.

"Given the cost of the revenue they would gain, all that really is, is four or five civil servants - stop employing them, those that retire, don't replace them."

"There's only one budget a year and this is the time to address it," added Inder.

The BBC has asked the States for comment.

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