The cost of heating oil has surged sharply over the past two weeks as conflict in the Middle East pushes global oil markets higher.
Data suggests that the cost of filling a heating oil tank has doubled in less than 14 days. [1]
Unlike households using gas or electricity, homes heated by oil are not protected by the energy price cap, meaning global price shocks are felt almost immediately.
Around 1.5 million households across the UK rely on heating oil, with particularly high levels in rural areas and in Northern Ireland where the majority of homes use oil for heating.
In the past 48 hours, ministers have signalled growing concern about the impact of rising oil prices on household bills.
During a visit to Belfast, the Prime Minister warned heating oil suppliers that prices must be “fair, transparent and justifiable”, saying the Government “will not tolerate profiteering” as global tensions push energy costs higher.
The Government has also asked the Competition and Markets Authority (CMA) to keep heating oil prices under close scrutiny alongside petrol and diesel prices.
Separately, the Chancellor and Energy Secretary have held talks with fuel retailers in Downing Street, warning companies not to exploit global instability by increasing margins.
A spokesperson for the End Fuel Poverty Coalition, commented:
“It is right that the Government is asking the Competition and Markets Authority to keep a close eye on heating oil prices as global tensions drive up costs.
“Homes that rely on heating oil sit completely outside the energy price cap. That means as global oil markets spike, families in rural and off-grid homes have seen the costs they are expected to pay more than double in less than two weeks.
“While transparency and scrutiny are essential to ensure households are not being overcharged, it is becoming increasingly clear that the Government may have to act in the weeks ahead to provide further protections and support for these households. Longer term, the lesson is clear: leaving so many homes dependent on volatile fossil fuel markets exposes them to repeated price shocks.”
[1] Data from BoilerJuice shows a price of 63.1p per litre on 1 March has risen to 128.1p per litre on 13 March.