Heating oil prices are driven by global markets and local costs rather than any formal price regulation, the Office of Fair Trading has said.
Responding to a written question from Jason Moorhouse, OFT Chair Tim Glover said the price paid by domestic suppliers for kerosene is made up of three key elements: the commodity price, taxes and duties, and gross margin.
Mr Glover said: “Heating fuels in the Isle of Man – kerosene (domestic heating oil) and gasoil (commercial heating) are priced through a combination of international market costs, local operational costs and company margins, with no formal price regulation.”
The commodity price is the largest component and closely tracks Brent crude oil. Gross margin includes shipping, storage, island distribution costs and profit.
Taxes on heating oil remain much smaller than those on road fuels.