PETROL prices in the Isle of Man will not be reduced with subsidies from the government, despite the high cost of fuel at the pumps.

That was the response in the House of Keys this morning from Treasury Minister Eddie Teare who said that the loss of tax revenue of around £3 million could not be considered in the current economic environment.

He replied to a question by Onchan MHK Zac Hall who wanted to know why a scheme similar to that active in the Orkneys, Westerns Isles and Hebrides, where subsidies were given to reduce fuel costs, was not to be implemented in the Isle of Man.

Mr Teare said that a reduction in duty on petrol and diesel could not be justified at present and he expressed a concern that even if government was to provide a subsidy such savings still might not be passed on the public by the petrol companies.

“This is not a decision which can be taken at the moment,” he added.