The Chief Minister has confirmed that fuel prices are expected to stabilise in the coming days following a weekend of diesel shortages and mounting concern over rising costs driven by the war in Iran.
Alf Cannan has outlined that there is no current expectation of rationing.
Although, the government added: “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.”
The Chief Minister updated MHKa this morning outlining a coordinated government response to the evolving global fuel crisis.
However, that response offers little real additional support.
Supplies
While overall supply remains stable, the island experienced diesel shortages over the weekend, attributed to increased demand and adverse weather delaying restocking.
Mr Cannan 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.”
He added: “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.”
Following fuel deliveries at the weekend, pricing is expected to remain stable for the next several weeks due to the regular shipment schedule.
Households
Mr Cannan also acknowledged the strain on households, saying: “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.”
He added: ‘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.’
Steam Packet
The Steam Packet planned increase to the Fuel Surcharge from tomorrow was noted by the Chief Minister as adding to concerns across the economy, with impacts to be monitored closely.
Mr Cannan said: “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.”
The Treasury Minister is due to provide a wider economic update at April’s Tynwald sitting.