Heating oil prices have surged since the start of the Iran war, leaving UK households that depend on oil-fuelled central heating facing significantly higher bills as winter approaches. Many will pay nearly double what they spent last year, according to the source material. Some users are responding by limiting their purchases - one homeowner from Shropshire said she now buys only 500 litres at a time instead of larger quantities, as it costs over £500 per order.
The impact falls hardest on those with limited incomes. Action with Communities in Rural England said 1.7 million UK households are off the gas grid, mostly in rural areas, and face hundreds of pounds in additional bills because heating oil must be bought in bulk. Campaigners have called for heating oil customers to receive a similar price cap to that protecting mains gas and electricity users in England, Scotland and Wales, but no such promise has been made.
Ministers announced plans on Tuesday to tighten market rules, promote competition and improve customer compensation routes. They will review minimum order levels that some suppliers impose. However, the government has only committed to developing a regulatory regime rather than introducing a price cap. Campaign group ACRE's chief executive called for an immediate VAT cut on heating oil and LPG, saying the government's measures do not adequately address the fundamental problem of high and volatile prices.