Contingency Plans Prepared for Price Increases
Contingency plans for essential services are prepared and ready to be implemented if necessary due to price increases following the conflict in the Middle East, the treasury minister has stated.
The ongoing conflict has caused a surge in fuel and oil prices, alongside some shortages at forecourts.
During an update to Tynwald, Chris Thomas reported that wholesale heating prices have increased by 70%, with diesel and petrol prices rising to 189p and 154p per litre respectively.
While the government is closely monitoring the impact on public services, Thomas indicated that no disruption is currently expected.
"Contingency plans to protect essential services are ready if required, and government is working closely with charities whose support for households remains as important now as ever," he said.
Thomas also cautioned that further secondary effects are likely as increased costs move through supply chains, particularly affecting food prices later in the year due to rising fertiliser costs.
He suggested that measures such as reinstating a bus fare cap might become necessary, although the government is not currently considering subsidies.
Concerns Over Heating Oil Costs
MHK Lawrie Hooper highlighted that filling a 900-litre heating oil tank now costs £400 more than it did three months ago.
"That is a significant amount of money for someone to find," he said, questioning what support is available for those purchasing heating oil.
Michelle Haywood MHK emphasized the urgent need to plan for sustained elevated prices into the colder months and inquired whether targeted winter assistance, such as extending the winter fuel payment and eligibility criteria or specific support for households using heating oil, is being considered.
Tim Glover MHK raised questions about methods to identify emerging key issues and their impacts, noting that individuals on lower incomes or with health difficulties are already disproportionately affected by the price increases.
Government Response and Support Measures
In response, Thomas stated that there are currently no plans for specific support during the winter.
He said the government had ensured that vulnerable customer registers are maintained with energy suppliers and that adequate arrangements are in place for these customers.
Thomas noted that some MHKs have suggested immediate subsidies, but cautioned against this approach.
"They might appear at first to be the right fix, but they are a quick fix and can be very expensive," he said.
Instead, Thomas advocated for a focus on energy efficiency, reducing consumption, and investing in insulation to mitigate the impact of global energy price shocks.
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