The Office of Fair Trading says recent hikes in gas prices do meet terms of a regulatory agreement.
In May, Manx Gas announced prices would rise by 3.5 per cent from the start of this month.
In the House of Keys yesterday, Chairman of the Office of Fair Trading Martyn Perkins claimed the agreement between the company and the government to cap profits is the best way of managing the supply.
He says the agreement fixes prices at a level he feels is fair: