Fuel prices on the Isle of Man are expected to stabilise in the coming days following a weekend of diesel shortages and rising costs linked to global tensions, the Chief Minister has said.

Alfred Cannan said while recent disruption had caused concern, there is no current expectation that fuel rationing will be introduced.

However, he added that contingency plans remain under constant review.

A government spokesperson said: ‘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 update came after a weekend in which some garages experienced diesel shortages, attributed to a combination of increased demand and adverse weather delaying restocking deliveries.

Supplies have since been replenished, and the government says overall availability remains stable.

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.

‘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 fresh deliveries on Monday evening, unleaded petrol at EFV garages was recorded at 157.9p per litre, the highest price since November 2022. Diesel prices currently vary between 184.9p and 189.9p per litre.

Despite the recent increases, the government expects prices to settle in the short term due to the island’s regular fuel shipment schedule, with stability anticipated for the next several weeks.

The Chief Minister acknowledged that rising costs are likely to have a growing impact on households, particularly as higher-priced home heating oil begins to reach the island.

‘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,’ he said.

‘I know this will put pressure on many households, even though we are approaching warmer temperatures for spring and summer.’

He stressed that any government intervention would be carefully targeted.

‘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,’ he added.

Concerns have also been raised about wider economic impacts, including the Isle of Man Steam Packet Company’s planned increase to its fuel surcharge from April 1.

Mr Cannan said this would be monitored closely as part of the government’s ongoing assessment.

The Council of Ministers’ Economic and National Strategy Board is meeting weekly to evaluate the situation, while a new industry liaison group is set to be established to strengthen engagement with key sectors such as retail and logistics.

Mr Cannan said the government was preparing not only for immediate pressures but also for potential longer-term effects later in the year.

‘We are preparing not just for the immediate challenges, but also for the potential longer term impacts that may arise later in the year,’ he said.

‘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 Chris Thomas is expected to provide a broader economic update at this month’s sitting of Tynwald.