Ministers have signalled short‑term support for households reliant on heating oil after sharp price rises since late February. The Department for Energy Security and Net Zero has written to industry to insist on fair, transparent pricing while the Competition and Markets Authority conducts an urgent review of retail practices. Because the Ofgem price cap does not apply to heating oil, these customers have been more exposed to price spikes. (assets.publishing.service.gov.uk)
The surge follows severe disruption around the Strait of Hormuz during the current conflict involving Iran, a route that ordinarily carries about a fifth of global oil supply. Brent crude crossed $100 a barrel and, at points last week, approached $120 before closing near $103 on Friday 13 March, underlining the volatility now feeding through to households. (washingtonpost.com)
Around 1.5 million UK households rely on heating oil, with usage concentrated in rural areas and Northern Ireland. Official data indicate oil is the primary heating source for about 61 per cent of Northern Ireland homes (2024/25), around 3.5 per cent of households in England and Wales use oil as their only central heating, and roughly 6 per cent of Scottish households use oil as their main fuel. (gov.uk)
The CMA’s initial evidence review is focused on two patterns: orders being cancelled and re‑quoted at higher prices, and steep increases for automated top‑ups triggered by tank monitors. The authority says it will use consumer enforcement powers under the Digital Markets, Competition and Consumers Act 2024 and will take action if breaches are identified. (gov.uk)
Industry representatives report an exceptional and unexpected surge in demand. UKIFDA has issued advice noting rapid wholesale movements and says distributors are working to fulfil orders; major distributors have separately pointed to marked increases in volumes and price volatility while seeking to minimise disruption. (ukifda.org)
For gas and electricity customers, Ofgem confirmed on 25 February a 7 per cent reduction in the price cap for 1 April to 30 June 2026. The next update, covering 1 July to 30 September 2026, will be published by 27 May 2026. The cap applies to regulated default electricity and gas tariffs only; it does not limit the price of heating oil. (ofgem.gov.uk)
In a 9 March letter to UKIFDA, ministers restated that pricing must be fair, transparent and fully justifiable, with vulnerable households prioritised under industry schemes. Separately, the Prime Minister has warned that government will act against unjustified price hikes in the home‑heating‑oil market. (assets.publishing.service.gov.uk)
Administrative routes exist for targeted support. In 2023 the government’s Alternative Fuel Payment delivered a one‑off £200 to eligible off‑grid homes using heating oil and other fuels, primarily via electricity suppliers, with a back‑up application portal for households without an electricity account. That model demonstrates an available channel for any future schemes. (gov.uk)
Next steps now divide between enforcement and delivery. The CMA will collect evidence from suppliers and intermediaries before deciding whether to escalate to formal enforcement. Ofgem’s April cap is fixed until 30 June and will reduce bills on regulated tariffs by around 7 per cent, while the July–September level will be set by 27 May based on wholesale observations to mid‑May. Details of any government support for oil‑heated homes are awaited. (gov.uk)