A ten per cent rise in the price of a litre of diesel is partly due to prices overseas, according to Governor Mark Capes.
But more than half the 12 pence increase reflects a rise in customs duty.
In his report of the latest Executive Council meeting, Mr Capes says: “The increase was due in part to the US dollar price of fuel increasing and also to the relatively small shipment of fuel on 8 May, which resulted in a higher average delivery cost per litre.”
In fact, a press release issued by St Helena Government (SHG) on 17 May reported that customs duty on a litre of diesel had risen from 10p to 17p – accounting for just over half of the increase at the pumps.
A litre of diesel now costs £1.25.
The duty on petrol has fallen by four pence, but the price at the pumps has stayed the same at £1.52 per litre.
SHG says fuel prices will be reviewed again after the next tanker delivery, expected in August.
When fuel prices rise everyone thinks about their private car, but there is also a big impact on businesses. Plant and machinery also use fuel. So, in part, this is a tax increase on doing business here. Many businesses here already struggle. For some could this be the final straw?
John Turner, St Helena
Burgh House business solutions
St Helena Government