Westminster Policy News & Legislative Analysis

PM warns NI heating oil profiteering; CMA opens review

During a visit to Belfast on Thursday 12 March, the Prime Minister set out a commitment to protect households in Northern Ireland from unfair home‑heating oil practices. He told suppliers that pricing must be fair, transparent and justifiable, and said the government will act - including through regulation - if unjustified rises continue. (gov.uk)

The visit includes meetings with the First Minister, deputy First Minister and leaders of the five main parties to discuss how the UK Government can support people with the cost of living and growth. Downing Street said the agenda includes recent heating oil price spikes and steps to make people better off. (gov.uk)

On Wednesday 11 March, the Competition and Markets Authority announced it is examining heating oil in response to consumer complaints during the current Middle East crisis. Heating oil powers about 1.5 million UK homes and is the main fuel for home heating in Northern Ireland. The CMA is writing to suppliers and intermediaries to gather evidence on cancelled orders followed by re‑quotes at higher prices and increases applied to automated deliveries, with powers drawn from the Digital Markets, Competition and Consumers Act 2024. (gov.uk)

The authority stressed the review is at an initial stage and no findings have been made. Depending on the evidence, the CMA may take enforcement action or conclude that consumer protection law has not been breached. (gov.uk)

Reliance on oil in Northern Ireland remains high. In 2024/25, official statistics show 61% of households used oil central heating as their primary method, underlining the potential impact of any market intervention on household budgets. (nisra.gov.uk)

Unlike electricity and gas, the domestic heating oil market in Northern Ireland is not subject to economic price regulation by the Utility Regulator. Consumer bodies have repeatedly highlighted this gap, noting that households depend on competition and transparency rather than tariff control. (uregni.gov.uk)

Ministers also referenced broader cost‑of‑living measures. The government pointed to the statutory Fuel Finder open‑data scheme for road fuel prices, the continuing fuel duty freeze which it says has saved the average Northern Ireland driver £89, and the recent increases to the National Living Wage and National Minimum Wage benefiting up to 140,000 people. (gov.uk)

For households and suppliers, the immediate implications are operational rather than legislative. The CMA is contacting firms for information about pricing practices; households can continue to compare offers using the Consumer Council’s weekly average price data by council area. (gov.uk)

Policy teams should now track two decision points: whether the CMA identifies potential breaches of consumer protection law, and whether ministers bring forward any further regulatory proposals if unjustified price rises persist. Both will shape the next phase of intervention. (gov.uk)

In parallel, fuel price transparency reforms are progressing. Departments indicate motorists should begin to benefit during 2026 from near real‑time pricing data delivered through the statutory Fuel Finder scheme, a key recommendation of the CMA’s 2023 market study that government accepted. (gov.uk)