Chief Minister Alfred Cannan has said government’s response to soaring oil prices will be ‘precise and targeted’ as pressure grows for urgent support for struggling households.

Speaking in the House of Keys on Tuesday, Mr Cannan outlined seven key principles guiding the island’s approach as energy costs continue to rise sharply, with home heating oil prices effectively doubling in recent weeks.

The Chief Minister confirmed the Economic and National Strategy Board is now meeting at least weekly to monitor both energy prices and supply chains, with a full economic statement expected from the Treasury Minister in April.

‘Our response will be precise and targeted,’ he said. ‘Our response will be evidence based.

‘The government must prepare for the long-term effects, including considerations of potential impacts into next autumn and winter on our society.’

The update follows disruption to fuel supplies on the island earlier this week, when deliveries resumed after shortages linked to poor weather and increased demand.

Prices have since surged, with diesel reaching as high as 185.9p per litre at some forecourts and unleaded climbing to 157.9p - the highest level since November 2022.

Mr Cannan said government is working to fully understand the scale of the issue while preparing measures to protect vulnerable residents, particularly those reliant on home heating oil.

He confirmed a new industry monitoring body will be established, involving the Enterprise and Treasury Ministers, to improve oversight of private sector activity and pricing. Contingency plans are also being developed to safeguard fuel supplies.

However, members of the House raised concerns that action may not come quickly enough.

Ramsey MHK Lawrie Hooper said: ‘I’m not entirely convinced that vulnerable people can wait until April, Tynwald, to find out what it is that government is proposing to do.’

In response, Mr Cannan acknowledged the urgency of the situation but said any intervention must be carefully targeted.

‘If we take action, fundamentally it’s working out if we’re going to target it, how you target successfully,’ he said, adding that those using home heating oil are currently the most exposed, while gas and electricity prices remain stable and controlled.

Questions were also raised by former DoI Minister Michelle Haywood over how government defines vulnerable households and what engagement has taken place with fuel suppliers.

Mr Cannan said discussions with companies are ongoing ‘if not daily’ and urged members to share evidence of constituents facing hardship.

‘The companies have assured us that they will treat those cases respectfully,’ he said.

He also confirmed that letters will be sent to third sector organisations this week, inviting them to provide information on emerging issues, while a formal line of communication will be established with local authorities to support tenants who rely on heating oil.

The Chief Minister said government would continue to keep the situation under close review as it develops, with further detail expected in the coming weeks.