The Isle of Man Chamber of Commerce says the Steam Packet Company’s fuel surcharge is creating significant cost pressures across the island’s economy.
It follows a rapid survey of member businesses found that 88% are experiencing a negative impact.
The survey, completed by 58 businesses across sectors including hospitality, retail, agriculture, construction, healthcare, logistics, food production, professional services and charities, shows that 15.5% believe the surcharge poses a severe threat to their viability or growth.
A further 51.7% report a significant cost increase that will affect pricing and margins. Only 12.1% say they expect no material impact.
Almost half of respondents (48%) say they will pass the additional cost on to customers, either fully or in part, while 19% expect to reduce costs elsewhere, including staffing and investment.
Chamber says this means the surcharge will add inflationary pressure across a wide range of goods and services.
Ongoing Concerns
Open responses highlight concerns about freight costs, supply chain reliability and the cumulative effect of rising fuel, wage and material costs.
An agricultural business reported higher costs for importing feed and fertiliser. A small food producer exporting to the UK described the surcharge as “devastating” for already tight margins.
A dental practice warned that some suppliers may stop delivering to the island, potentially affecting healthcare provision.
Charities also raised concerns about increased isolation among vulnerable people if service costs rise.
Businesses are also calling for Government action. The most common requests were intervention or mitigation (69%), a review of the fuel pricing and surcharge mechanism (64%), and greater transparency about how the surcharge is calculated (60%). No respondents selected “no action required”.
Chamber says it recognises the Steam Packet is operating in challenging global conditions, but notes that Government, as the company’s sole shareholder, has the ability to assess the wider economic impact.
Chamber will be writing to Government to share the survey results and anecdotal evidence from businesses, and to request a meeting.
Chamber is asking Government to consider three action points as a matter of urgency:
- To provide clear and regular public communication about how the surcharge level is set and how it will be reviewed as fuel markets change.
- To assess whether targeted subvention of the surcharge, even in part, represents a cost-effective way of protecting businesses and consumers from broader inflationary pressure across the island.
- To consider whether additional support is needed for the sectors most acutely affected, including hospitality, agriculture, healthcare and the charity sector.
The full survey results can be found here.
