In the autonomous island of Guernsey, a British Crown Dependency, the sharp rise in fuel prices has increased cost pressures in the agriculture and livestock sector. The price per liter of fuel used by farmers, known as "red diesel," has risen by approximately 76 percent since the beginning of the year.
Michael Bray, President of the Guernsey Farmers Association, announced that the price per liter of diesel used in agricultural production has risen from 63 pence at the beginning of 2026 to 1.11 pounds. Bray stated that the increase is putting serious pressure on the profitability of businesses.
We are currently stuck between a rock and a hard place. We have no control over our costs, and we cannot control our income either.
In his assessment to the BBC, Bray stated that he purchased diesel for 1.11 pounds last week, noting that the rise in fuel expenses has disrupted the income-cost balance for farmers.
MILK PRICE HIKES ON THE AGENDA
Due to rising production costs, discussions regarding 2027 milk prices in Guernsey are expected to begin. Producers state that the rise in fuel prices may make it necessary to increase milk prices.
Bray said they want to keep potential increases that will be reflected to the consumer as limited as possible. The wholesale price of milk on the island was increased by 3.3 percent on January 4, 2026, in line with inflation. The current inflation rate in Guernsey stands at 4.3 percent.
The rise in fuel costs is affecting not only the agricultural sector but also other businesses on the island. Ronez, Guernsey's sole aggregate supplier, reported that it consumes approximately 30 thousand liters of diesel per month and that price increases are raising company expenses.
Ronez General Manager Steve Roussel stated that a portion of the costs is passed on to customers through a fuel surcharge, while the remainder is covered by the company. Roussel said that the uncertainty created by conflicts in the Middle East and Ukraine in energy prices is also making budget planning for next year difficult.
While it is proposed to increase the fuel tax by 4.3 percent in the Guernsey government's 2027 budget, some deputies have taken initiatives to stop the increase. While Lee Van Katwyk and Rob Curgenven want the increase in fuel tax to be frozen, Neil Inder submitted a motion to stop the tax increase on diesel or to reduce the tax by 5 pence per liter.
Within the scope of previously accepted transport tax changes, it is planned to make a 25 percent discount on fuel tax and switch to an annual motor vehicle tax. According to officials, since the implementation of the new system will take 12 to 18 months, the regulations can be put into effect in 2028 at the earliest.
News Source: 12punto
