Heating oil prices in the UK have risen by up to 82% since the start of the US-Israeli war with Iran, according to the Minister for Energy Consumers Polly Billington. The government has announced new measures aimed at regulating the market and reviewing minimum purchase amounts that some customers are required to buy. Billington told the BBC that the government needed to ensure the market operated fairly, and noted that rural communities living off the main gas grid were among those most heavily affected by the increases.
Residents across the South West have described the impact on their finances. Nicola Sharpe, from Dunsford in Devon, said she paid approximately £340 for 500 litres of heating oil a year ago, but the same amount now costs just over £600. Lee Fossey, from St Agnes in Cornwall, said that despite budgeting carefully and paying £30 monthly into a savings scheme to spread costs throughout the year, she could no longer afford to fill her tank. Pauline Trubody, aged 76 and from Porkellis in Cornwall, said she had already spent more on two deliveries of 500 litres in the current year than in previous years, and indicated she would use her heating less frequently during winter.
The government pledged earlier in October to tighten regulation of the sector, promote competition and provide clearer compensation routes for customers if problems arise. Ministers said they would also review minimum order levels set for some customers. However, some residents expressed doubt about whether regulatory changes would reduce costs. Sharpe said she could not see how regulation would bring prices down, while Trubody warned that many people would struggle to heat their homes and could face going without.
The government had previously announced a support package worth £53 million for low-income families who use heating oil. For UK savers and households dependent on heating oil, the price increases mean winter heating will consume significantly more of their budgets unless they receive targeted government assistance or prices fall.