Following the fuel-price changes introduced on Friday, 7 August 2026, St Helena Government (SHG) is providing further information on how the new prices were calculated and what caused the increase.
The pump price of diesel increased by 16p, from £2.07 to £2.23 per litre, while petrol increased by 2p, from £2.02 to £2.04 per litre.
These are the first changes to fuel prices since March 2024.The increases reflect higher overseas fuel and delivery costs following the latest shipment, received at the end of July 2026. SHG customs duty, the Bulk Fuel Installation (BFI) wholesale mark-up and the on-island retail mark-up have not increased. SHG recognises that changes in fuel prices affect household and business costs and may have wider consequences across the island’s economy. The following information is provided to explain the factors behind the new prices and distinguish between costs determined overseas and those managed locally.
How fuel prices are calculated
SHG use a long-standing, pre-agreed pricing model. Diesel and petrol are priced separately, with no cross-subsidy between them.
The model takes account of:
- the cost of purchasing the fuel;
- transportation to St Helena;
- exchange-rate movements;
- import duty;
- the cost of operating the BFI; and
- the retail cost of providing fuel at the pump.
A stock adjustment is also applied to the wholesale price because fuel already held on the island was purchased at a different price from the fuel received in the latest shipment.
Import costs are also affected by exchange-rate movements, as fuel is purchased in Namibian dollars and freight is paid in US dollars.
Understanding the cost breakdown
Landed cost: The cost of purchasing the fuel and transporting it to St Helena.
SHG fixed customs duty: Tax revenue collected by SHG to help fund essential government services.
BFI wholesale mark-up: The mark-up used to cover BFI operating costs, including staff, on-island fuel distribution, repairs, maintenance, management and administration.
On-island retail mark-up: The mark-up charged by retailers to cover the cost of operating petrol and diesel pumps for customers.
Diesel price breakdown
| Diesel | Before July 2026 Shipment | After July 2026 Shipment | Cost Change (£) | Percentage Change (%) |
| Landed cost | 1.15 | 1.31 | 0.16 | 13.9% |
| SHG fixed customs duty | 0.39 | 0.39 | – | – |
| BFI wholesale mark-up | 0.21 | 0.21 | – | – |
| On-island retail mark-up | 0.32 | 0.32 | – | – |
| Pump price per litre | 2.07 | 2.23 | 0.16 | 7.7% |
Petrol price breakdown
| Petrol | Before July 2026 Shipment | After July 2026 Shipment | Cost Change (£) | Percentage Change (%) |
| Landed cost | 1.13 | 1.15 | 0.02 | 1.8% |
| SHG fixed customs duty | 0.39 | 0.39 | – | – |
| BFI wholesale mark-up | 0.18 | 0.18 | – | – |
| On-island retail mark-up | 0.32 | 0.32 | – | – |
| Pump price per litre | 2.02 | 2.04 | 0.02 | 1.0% |
The breakdowns show that the increase in fuel costs is due only to higher landed fuel costs from overseas suppliers and delivery costs. SHG customs duty, the BFI wholesale mark-up and the on-island retail mark-up remained unchanged for both diesel and petrol.
Solomon’s has also applied a lower mark-up than it is contractually entitled to, helping to keep the retail prices paid by consumers lower than they would have otherwise been.
The recent refurbishment of three large diesel tanks in Rupert’s has increased storage capacity. The additional capacity has also helped reduce costs as the delivery costs are spread over a larger parcel of fuel.
SHG will continue working with Solomon’s to secure future fuel shipments at the best available price. SHG will also continue to manage the costs that it can control locally.
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