Island hit by freight and home heating price hikes

The cost of fuel for ferries and home heating is rising sharply due to unrest in the Middle East, the chief minister has acknowledged.

Freight charges for goods transported by the Isle of Man Steam Packet Company are set to increase by around 25% from 1 April, with the surcharge fixed for three months until the next quarterly review.

The charges fall under the formal fuel surcharge system, which allows the Steam Packet to recover sudden increases in fuel costs.

Chief Minister Alfred Cannan acknowledged it would be "unwelcome for many" as it could affect both household bills and the cost of imported goods.

The fuel surcharge is an added not-for-profit charge to ferry fares or shipping costs to cover sudden rises in fuel prices.

The hike in costs comes as garages across the island this week have begun implementing price rises.

The island's main fuel supplier Ellan Vannin Fuels (EVF) released its latest pricing on Tuesday, with a warning that it may change again in coming days.

Current charges stand at £1.57.90 per litre for unleaded petrol, £1.89.90 per litre for diesel, and £1.64.90 for super unleaded.

The Chief Minister explained that while rises were significant, the freight surcharge is lower than in previous years.

He said: "We are taking this very seriously. Price increases of this level do impact costs."

Members pressed the chief minister to give assurances to vulnerable households that they would be given support, ahead of an update from Treasury in April's Tynwald sitting.

Cannan said the government planned to target help where it is needed most, particularly for people relying on heating oil.

He also highlighted the unpredictability caused by the war in the Middle East, noting that oil prices could fluctuate rapidly.

Cannan said a new group, including business leaders and ministers, had been created - to track how families and companies were being affected.

Plans are also in place to make sure essential services are kept running and fuel remains available, he said.

Other members, such as Ramsey MHK Lawrie Hooper, suggested revisiting measures used during the Covid pandemic, when fuel surcharges were temporarily fixed to reduce sudden price spikes.

Cannan said while all options were being considered, the current fuel surcharge was lower than the 2022-23 peak.

But he stressed households and businesses must prepare for further uncertainty, with the future of the conflict in the Middle East still unknown.

"We just simply don't know. It could end in two days, it could end in two years," he said.

Read more stories from the Isle of Man on the BBC, watch BBC North West Tonight on BBC iPlayer and follow BBC Isle of Man on Facebook and X.