The government has outlined its limited scope to intervene on fuel duty and the Steam Packet fuel surcharge, as global fuel price increases continue to impact the island.
In an update, the government said that fuel duty falls outside local control.
As part of our agreements with the UK around VAT and other duties, fuel duty is a tariff set in agreement with the UK.
On the Steam Packet Company’s Fuel Surcharge, which increased from £8.79 per metre to £11.06 per metre from 1 April 2026, officials said the mechanism is governed by the User Agreement.
The government said: “The Fuel Surcharge increase announced by the Isle of Man Steam Packet from April 1 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.”
No reference was made to government intervention to alter the surcharge mechanism.
On VAT, the update did not set out specific changes, though Treasury is assessing economic impacts.