The Chief Minister updated Members of the House of Keys this morning, 31 March, about the evolving situation arising from global fuel price increases, confirming that the Isle of Man Government was stepping up its coordinated response.
While the Island continues to experience stable overall fuel supply, the Government recognises the concern felt by motorists, households, businesses and the third sector as a result of increased prices now being introduced following this month’s scheduled fuel deliveries.
Chief Minister Alfred Cannan confirmed that Government is continuing to maintain close, active communication with local fuel companies to ensure accurate, real-time understanding of supply levels and cost issues. Members of the public were also thanked for avoiding unnecessary stockpiling and considering the needs of others when refilling their vehicles.
Following the arrival of fuel supplies to the Island at the weekend, the Government expects fuel pricing to stabilise in the next couple of days and remain stable for the next few weeks due to the nature of the regular shipments to the Island.
The Chief Minister also confirmed that the Government’s Economic and National Strategy Board continues to meet weekly to assess the economic impact of rising global fuel prices, review pressures on households and businesses and formulate contingency plans and targeted actions where needed. The Government is preparing for potential long-term effects, including the potential for community impacts that may be prevalent next autumn and winter.
Mr Cannan said that the Isle of Man Steam Packet Company’s planned increase to the Fuel Surcharge from 1 April 2026 had added to concerns across a number of areas of the economy and that the impact this would have would be monitored closely.
To strengthen engagement with the private sector, the Government will also establish an industry liaison body, led by the Enterprise and Treasury Ministers, to enhance understanding of operational challenges faced by key business sectors including retailers, hauliers and related industries.
In addition, key third sector and voluntary organisations are being contacted to establish more regular lines of liaison and feedback, particularly in respect of any impact on the most vulnerable in society.
Chief Minister Alfred Cannan MHK said:
‘The war in Iran and the impact on global fuel markets continue to evolve and we fully understand the concern this is causing for residents and businesses alike.
‘I want to reassure the public that our fuel supplies remain stable over the coming days and weeks, and Government is acting decisively to ensure that continues. We are working closely with fuel companies, the private sector and the third sector to fully understand the pressures being felt across our community.
‘We are preparing not just for the immediate challenges, but also for the potential longer term impacts that may arise later in the year. The Government will do everything necessary to protect essential services, support the most vulnerable, and maintain the resilience of our supply chain. Any response we do bring forward will be targeted, carefully considered, and evidence based.
‘I would like to thank our fuel suppliers in particular for their work over the weekend in supporting customers to access diesel whilst it was being restocked, and we will continue to work with them as we look to future delivery plans and options into the longer term.
‘We have seen significant increases in fuel prices at the pumps, and we are now about to see significant increases in home oil prices as new supplies start to be delivered. I know this will put pressure on many households, even though we are approaching warmer temperatures for spring and summer.
‘Any response we do bring forward will need to be targeted to those who most need it and be done in a fair and responsible manner.
'As the situation continues to evolve, we will monitor and work closely with key stakeholders across our Island and I will continue to give regular updates going forward during these times of inevitable concern and uncertainty. In addition, the Treasury Minister will give an economic update to April’s Tynwald as to the broader situation and Government’s economic response.’
Frequently asked questions
Q1: Why have fuel prices increased?
Global tensions and conflict in the Middle East have caused international wholesale fuel prices to rise. These global changes affect the Isle of Man as part of the international supply chain.
Q2: Are we facing fuel shortages?
The Island’s fuel supplies remain stable, and the Government is in regular contact with fuel suppliers to monitor the situation closely. Over the weekend there were localised shortages of diesel, due in part to increased demand and in part due to slight delays on restocking as a result of adverse weather. Longer term contingency planning is in place and will continue to be maintained should this position change.
Q3: Will fuel prices keep rising?
Prices have risen in line with global markets but, following the latest delivery, they are expected to stabilise for at least the next few weeks. The situation is different to that seen in 2022 with some costs not yet at those levels and others now exceeding these and there is the risk of sustained increases for some time based on the evolving situation.
Q4: Is the Government doing anything to help people struggling with rising costs?
There are a range of existing support measures in place for those most vulnerable in our society. The winter fuel bonus payments were made in January and the increase to Personal Allowance due to take effect from 1 April will provide some additional disposable income to many households. The situation continues to evolve and additional liaison with the third sector is now being set up.
The Government’s Cost of Living Website has been updated with the latest advice and signposting for support.
Treasury is looking at the developing economic impacts, and the Treasury Minister will provide an update at April’s Tynwald.
Q5: Can the Government cut fuel duty to help motorists?
Fuel duty is a tariff set in agreement with the UK.
Q6: Could fuel rationing be introduced?
There is no current expectation of rationing. However, like all responsible Governments, we continually review contingency options. Rationing would only be considered in circumstances where there were significant changes to the fuel supply scenario.
Q7: How is the Government supporting businesses affected by higher fuel costs?
The Department for Enterprise is engaging with retailers, wholesalers, hauliers, and the construction sector to understand impacts and ensure continuity of essential services. A new industry liaison forum is being established, led by the Enterprise and Treasury Ministers.
Q8: What can households do to reduce costs?
Cost-of-living tips and guidance are available on the Isle of Man Government website, covering energy efficiency, budgeting, and available support schemes.
Q9: What is happening with electricity prices and supply?
Manx Utilities has confirmed that the majority of supply of the gas that fuels the power station for 2026/2027 has already been secured and as such there are no immediate concerns as to price rises or supply. Increases to prices have been announced from 1 April 2026 at 1.5% for consumers, below inflation levels as a result of this forward planning.
Q10: Food security – is this a concern?
The increase in the price of fertiliser is likely to mean production costs will rise in a global context. Increases in the cost of fuel is likely to also put pressure on prices as well. However, at this stage, the full impact of this is not clear. This position as to costs will be kept under review and at this stage, there is no indication to suggest that there will be any issues with actual supply.
Q11: Can the Government intervene with the Steam Packet Fuel Surcharge?
The Fuel Surcharge increase announced by the Isle of Man Steam Packet from 1 April 2026 is a mechanism established in the User Agreement to allow for fluctuations in fuel costs. Over the last four years it has regularly been adjusted up and down, and the latest increase from £8.79 per metre to £11.06 per metre, whilst unwelcome is designed to ensure the company does not suffer losses. It is not designed to generate a profit and the surcharge remains below the peak levels seen in 2022.
Q12: How will Government consider any response to the evolving situation?
The Economic and National Strategy Board will continue to monitor the situation, escalating as required. A set of principles is currently guiding this position as set out below.
These will continue to be kept under review as the situation evolves. They are:
- The Economic and National Strategy Board will meet at least weekly to assess the economic impact and the appropriate Government response
- We must prepare for long-term effects, including the consideration of potential impacts next autumn and winter
- We will establish an industry monitoring body which will include the DfE and Treasury Ministers to ensure effective understanding of private sector activity and concerns, as well as liaising with third sector partners to monitor impacts on the most vulnerable on our Island
- We will protect essential on-Island services
- We will closely monitor supply chains and ensure that robust, proportionate contingency plans are in place and ready to be activated if required
- Any specific response we develop will be precise, targeted and evidence based
- We will maintain fiscal responsibility with any targeted responses, recognising the long-term uncertainties that apply to a conflict with significant global economic impacts
Q13: How will Government keep the public informed about support?
The Government remains committed to supporting those most affected by increased costs with Cost-of-Living advice and information available on it's dedicated website.
The Steam Packet's Freight Fuel Surcharge.
