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News

ISLE OF MAN STEAM PACKET COMPANY FUEL SURCHARGE REVIEW

25/2/2009

The fuel surcharge has been reviewed in line with the current arrangement with the Department of Transport.

With effect from 1st March 2009, the surcharge on freight will be reduced by 37% from £8 per metre to £5 per metre. The passenger rate will remain at £5.

The fuel surcharge is calculated in strict accordance with the terms of the agreement with the Department of Transport and is based on the weighted average marine fuel cost incurred over the six months prior to the review date.

The surcharge being applied from 1st March is based on marine fuel prices between August 2008 and January 2009. It therefore includes periods of high consumption such as August, September and October 2008 when fast craft were in operation and the price of marine fuel was still at record levels.

Under the agreement, the fuel surcharge is referenced to a sliding scale of marine fuel prices. Freight and passenger rates are subject to different sliding scales.

The reduction in the price of fuel over the last six months has been sufficient to trigger a reduction in the surcharge applied to freight, which increased by more than the passenger rate in the last fuel surcharge review in September 2008.

 For further information on how the fuel surcharge is currently calculated and applied please visit the Company’s website at steam-packet.com.

The Company has discussed with the Department of Transport and has advised the Office of Fair Trading that, with effect from 1st March, the fuel surcharge will be included in the price displayed on the website. This means that there will be consistency between the website and the brochure prices. The fuel surcharge will continue to be monitored by the Department of Transport.

Isle of Man Steam Packet Company Chief Executive, Mark Woodward, said: “The latest review of the fuel surcharge has been carried out in strict accordance with the agreement with the Department of Transport. This has resulted in a substantial fall in the surcharge for freight. However, because of the way in which the agreement is constructed, the movement in marine fuel prices over the six month review period has not been sufficient to trigger a reduction in the passenger rate. More detailed information on the fuel surcharge is available on our website at steam-packet.com”