Second half goals from Chris Bass and substitute Callum Morrissey fired an under-strength St George’s to victory in the match of the day.
That was enough to end Peel’s 100 per cent record and move the Geordies clear at the top of the Canada Life Premier League.
Elsewhere, Castletown hit five at Gymns to leave the Tromode side still rock bottom.
Alex Crawley, Peter O’Brien, Jack Charmer, Martin Charker and Anthony Beaman netted the goals as Town won 5-2.
Reigning champions Rushen’s improvement continued as goals from Mike Baker, Ted Pepper and Mike Edge saw off Ramsey 3-0 at Croit Lowey.
Old Boys consolidated third spot but were pushed all the way by lowly Michael - Gary Quirk scoring the only goal of the game at Blackberry Lane – while Douglas Royal won the battle of the newly promoted sides with a 3-2 home win over Ayre.
Matthew Montgomery and James Teare netted for the Tangerines.
Laxey are still fifth after a 7-1 rout at Corinthians, whose consolation was scored by Rauri Mooney.