WITH so much being said about the global credit crisis, volatile stock markets, the threat of recession and rising commodity prices, it is a considerable relief when some good news emerges on the economic front. As far as Jersey is concerned, more favourable news comes in the shape of some fuel prices, which have dropped substantially.

Thanks not only to the falling price of oil — and, to an extent, discount schemes operated by some garages — it is possible for Islanders to top up their petrol tanks for under 80p a litre. Diesel, meanwhile, is available at fractionally under 90p a litre.

These prices are a far cry from the peaks of only weeks ago and will clearly be welcomed by motorists. We should, however, remember that the basic cost of all fossil fuels are beyond our control and that we are dependent on international market conditions.

We should also remember that the purchasing practices of the organisations retailing fuel and energy have an enormous effect on the prices consumers have to pay at any given moment. Jersey Gas, for example, buys oil, from which the liquid petroleum gas for the Island supply is generated, a month ahead.

This means that there is a time lag between what is happening in the global market and savings that can be passed on to the consumer.

In spite of this, it seems likely that Island gas prices will follow the trend now set by those of petrol and diesel. If this is indeed the case, it will represent a change more significant than that in road fuel sales.
It can be argued that high petrol prices are in some ways good for the community. They might hit consum-ers’ pockets but they also have some effect on people’s propensity to use their vehicles, with consequent benefits in terms of congestion and pollution.

Any decrease in the price of gas or electricity, on the other hand, is generally socially desirable because of the favourable impact this has on the less well off in our community.

With winter fast approaching, those on limited incomes, who, of course, include many pensioners as well as the poorly paid, will be relieved that at least some of the price hikes of earlier in the year are likely to be offset by new pricing policies.