Road Pricing

A Fairer Road Ahead: Road Pricing, an Invitable Part of Jersey’s Future?

First published in the Jersey Evening Post 2025-07-02

As electric vehicles become more common on Jersey’s roads, the Island faces a growing dilemma. The system we’ve used for decades to raise revenue – fuel duty – is under threat.  Is now the time to begin embracing a new system – road pricing – to maintain the current level of revenue raised from the islands motorists?

If so, how might we make that transition fairly, transparently, and in a way that protects the real value of government revenue without increasing the cost of driving.

Why We Need Change

Fuel duty is currently set around 64 pence per litre.  Although not formally hypothecated for roads or other transport-related activities, this revenue is part of the invisible system that ensures those who use the roads help to pay for them. As electric vehicles (EVs) increase in number this revenue will shrink – because EV drivers don’t fill up at the pump.  This environmental policy success creates a fiscal problem. And it’s unfair. Two neighbours could drive the same distance, but only one pays fuel duty.

Doing nothing would over time shift the burden onto a smaller group of petrol and diesel users. But doing something doesn’t have to mean taxing Islanders more. It’s about changing how – not how much – we pay.

Road Pricing Is Not a Stealth Tax – If We Design It Right

The core idea behind road pricing is simple: drivers pay per kilometre driven, instead of per litre of fuel burned. But for Islanders to accept this change we must ensure it’s not used as a way to raise more money.  That’s why the government should commit to a revenue-neutral transition, adjusted only for inflation. The goal is not to collect more, but to replace what’s being lost, fairly and transparently.

Start with a Clear Baseline: What We Pay Now

The first step is to set a public baseline of total revenue raised by fuel duty. That figure should be published annually, alongside inflation-adjusted targets, so that Islanders can see the government isn’t quietly increasing revenue. By adjusting only for inflation we can protect the real value of that income without adding hidden costs for drivers.

A Five-Year Plan to Protect Drivers from Stealth Costs

Simple, Transparent Pricing That Islanders Understand

To win public trust, the system must be simple and fair.  A flat rate per kilometre – say, 2 to 3p/km to start – would reflect what we already pay through fuel duty. Drivers wouldn’t be surprised by their bills. And those who drive less, pay less.  Essential workers, carers, and low-income Islanders could be protected with caps, credits or discounted thresholds. A small allowance – say, the first 1,000 km at a lower rate – could make it fairer for light users. Crucially, the rate would only rise with inflation, not at the whim of Treasury.

Road Pricing Isn’t About Surveillance or Catching People Out

Understandably, Islanders worry about privacy.  Many modern vehicles already have in-built telematics that can track trip distance.  This simple technology is tried and tested and already in use in many commercial vehicle fleets.  Lower tech alternatives include simple odometer reporting verified during inspections and periodic declarations of mileage with occasional audits.  The point is this: the system should be low-tech by default, high-trust by design.

Let’s Talk About Fairness – Not Just Tax

Fuel duty penalises those who drive older, less efficient vehicles. Road pricing flips that logic. It doesn’t care what you drive – it only asks how far you drive.  That’s fairer for everyone. And because EV drivers currently pay nothing at all, road pricing corrects an emerging imbalance without discouraging greener transport.

This is not about squeezing more money from motorists. It’s about sharing the responsibility in a way that reflects how our islands roads are actually used.

A Public Dashboard for Public Confidence

Transparency is the antidote to suspicion.  That’s why Jersey should publish an annual road tax dashboard. It could include: total kilometres charged, average per-driver cost, annual revenue target vs. actual, fuel duty revenues during transition and the inflation index used.  If the system works as promised, Islanders will see the proof in black and white: no stealth tax, no hidden fiscal jiggery pokery.

What Happens to Fuel Duty?

During the transition, fuel duty would remain in place for petrol and diesel users – but not forever.  Once road pricing is fully operational, the government could begin rebating or phasing out fuel duty, to avoid double charging. That might mean small fuel duty refunds, or eventual reductions in the pump price.  Again, the principle holds: no one pays twice. And no one pays more than before, except in line with inflation.

Let’s Have an Honest Conversation—Before Crisis Forces Action

Some Islanders will naturally be cautious. But we should not wait for fuel duty revenues to collapse before we act.  A planned, transparent, five-year transition gives us time to design the system properly, test it with real users, and build public trust. Jersey is small enough, and smart enough, to lead the way on this.

This Is Not a Stealth Tax. This Is a Smarter Future.

Let’s be clear: this is not about squeezing more from Islanders. It’s about ensuring that everyone who uses Jersey’s roads and public transport contributes fairly to maintaining them – no more, no less.  Road pricing doesn’t have to be feared. If done right, it can be fairer, greener, and more transparent than the system we’ve had for decades.  The important thing is to start the conversation now – openly, honestly, and with a firm promise: This will not be a stealth tax.