Standing charges also rise
Gas prices are to increase by 3.5 per cent.
Manx Gas says the move follows consultation under the Regulatory agreement with the Office of Fair Trading.
Standing charges will also go up by 2.4 per cent.
Managing Director of Manx Gas, Tony Nicolls, says more than two-thirds of the tariff increase is because the cost of gas is above budgeted levels, and when combined with the non-gas related inflation, which makes up the balance of the change, the 3.5 per cent is unfortunately necessary.
He adds that inflation is also putting pressure on fixed costs, and despite efficiency measures, they still need to increase standing charges by 2.4 per cent.
Mr Nicolls points out that there were three tariff reductions in 2016 and this increase still leaves tariffs below 2015 levels.
The 3.5 per cent tariff increase, combined with the rise in standing charges, will add £24.57 per year for the average central heating customer on Direct Debit.
The increases will come into effect on June 1st