The price of fuel for vehicles is to drop by 5p a litre after the Manx government followed the UK’s announcement this afternoon.

The temporary cut to fuel duty is from 6pm today.

The Treasury says the fuel duty changes will be implemented by the Hydrocarbon Oil Duties Act (Amendment) (No. 2) Order 2022.

The reductions is a response to the global energy crisis following the pandemic, as well as Russia’s invasion of Ukraine to help with rising costs of fuel.

The rates of fuel duty on petrol and diesel will decrease by 5p per litre for 12 months.

‘Where practical, a proportionate cut will also apply to fuel duty rates which are lower than the main rates for petrol and diesel, including red diesel,’ a Treasury spokesman said.

The move follows an announcement from the UK’s Chancellor of the Exchequer, Rishi Sunak, to make the 5p cut.

He said the move was ‘the biggest cut to all fuel duty rates ever’.

The Isle of Man has broadly the same indirect taxes as the UK, so it is following suit.

In addition, this afternoon it was announced that there will be an application of VAT relief on the installation of Energy Saving Materials (ESMs).

This will mean wind and water turbines will be added to the list of ESMs and the complex eligibility conditions will be removed.

The relief will increase further by introducing a time-limited zero rate for the installation of ESMs. The changes will take effect from April 1.