Fuel duty revenue falls in first five months of 2026
- States collected £9.02m in fuel duty from January to May 2026, down from £9.11m in the same period in 2025
- May 2026 recorded lowest monthly collection at £1.66m, down from £2.00m in May 2025
- March 2026 saw highest monthly intake at £2.06m, up from £1.85m in March 2025
- When adjusted for inflation, 2026 collections lag behind recent years, with 2022 generating equivalent of £9.78m
- Data released following freedom of information request submitted in June 2026
The States has collected £9.02m in fuel duty during the first five months of 2026, representing a decline compared to the same period in 2025, according to newly released figures.
The data, provided by the Policy & Resources Committee in response to a freedom of information request, shows monthly excise duty collections on motor fuel from January to May this year totalled £9,020,700.
This marks a decrease from the £9.11m collected during the same five-month period in 2025, although higher than the £8.94m raised in 2024.
When adjusted for inflation to 2026 rates, the year-to-date total of £9.02m compares unfavourably to inflation-adjusted figures from recent years. The equivalent period in 2022, when adjusted to 2026 rates, would have generated £9.78m, whilst 2023 would have produced £9.42m and 2024 £9.54m.
May 2026 recorded the lowest monthly collection at £1.66m, down from £2.00m in May 2025. In contrast, March 2026 saw the highest monthly intake at £2.06m, up from £1.85m in March 2025.
The monthly breakdown for 2026 shows January collected £1.63m, February £1.80m, March £2.06m, April £1.87m, and May £1.66m.
Comparing this to 2025, January 2025 brought in £1.72m, February £1.70m, March £1.85m, April £1.84m, and May £2.00m.
The figures reveal considerable monthly variation across the five-year period examined. February 2021, for instance, collected just £736,700, whilst February 2026 generated £1.80m.
The data includes a note highlighting that 2021 figures reflect reduced revenue as a result of Covid lockdown restrictions in place at that time. The full-year comparison shows the January to May 2021 period collected £6.89m in actual terms, or £8.29m when adjusted to 2026 rates.
The 2022 period saw collections of £8.33m in actual terms, rising to £9.78m when inflation-adjusted. The 2023 period generated £8.50m, or £9.42m inflation-adjusted, whilst 2024 produced £8.94m, or £9.54m when adjusted.
The freedom of information request was received on 8th June 2026, with the Policy & Resources Committee providing the response on 29th June 2026.
The data covers only the first five months of each year, meaning full-year comparisons are not yet available for 2026.
Background and history
Guernsey's motor fuel duty underwent a fundamental transformation in 2008 when the States abolished the traditional annual motor vehicle tax ('motor tax') and consolidated all motoring taxation into an excise duty on fuel. This marked a deliberate policy shift toward a 'polluter pays' principle, tying taxation directly to fuel consumption rather than vehicle ownership. The change was considered economically fairer and administratively simpler. From 2008, the duty was set at approximately 28p per litre as a blended rate incorporating both the former motor tax element (around 20p) and excise duty (around 9p). Revenue from fuel duty began at approximately £10.8 million in 2008, growing steadily as duty rates increased. By 2015, annual revenue had reached approximately £17.1 million, and by 2019 it exceeded £22 million. During a transitional period from 2016 to 2022, fuel duty rates were largely frozen, but in 2023 they effectively doubled. Since 2008, fuel duty has risen by approximately 48 pence per litre according to 2021 figures, reaching 73.4p per litre that year, 80.9p by 2023, and 90.5p by early 2026. However, declining fuel volumes—from nearly 34 million litres in 2008 to less than 30 million by 2018—have eroded the tax base. In July 2019, recognising this structural problem, the States directed the development of a distance-charging pilot scheme to maintain revenue as vehicles became more efficient and electric vehicles proliferated. By 2026, Policy & Resources proposed a 25% cut in fuel duty, rebalanced with new annual vehicle ownership charges and luxury vehicle surcharges, reflecting acknowledgment that the 2008 consolidation was no longer fit for purpose.
Q&A
Q: How much fuel duty did the States collect in the first five months of 2026?
A: The States collected £9,020,700 in fuel duty from January to May 2026.
Q: Which month in 2026 had the highest fuel duty collection?
A: March 2026 recorded the highest monthly fuel duty collection at £2.06m.
Q: How does 2026 fuel duty revenue compare to 2025?
A: The 2026 year-to-date total of £9.02m is lower than the £9.11m collected during the same period in 2025, representing a decline in revenue.
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