Compensation for heating oil customers left out of pocket by energy crisis

Households whose heating oil orders were cancelled earlier this year and had to buy a much more expensive replacement delivery will now get compensation. 

Back in spring, oil-heated households across the UK and Ireland saw sudden price increases amid the ongoing conflict in the Middle East. 

Customers had their orders cancelled at short notice. Some had to re-order at a much higher price, while others struggled to get heating oil delivered at all.

Now hundreds of customers who had to buy heating oil at a higher price after their orders were cancelled are set to be paid compensation.

Those who didn't buy replacement heating oil will have their original orders honoured.

The Competition and Markets Authority (CMA) announced this in September after investigating concerns that some suppliers cancelled orders when heating oil prices surged, possibly breaching contracts.  

It also found that consumers paid around £200 more for 500 litres of heating oil in March 2026 than in February 2026, mostly owing to higher wholesale costs. 

Find out below if you're due compensation and whether you can get extra government support to pay for heating oil.

It's not just oil-heated homes affected by price changes. Find out how the energy price cap is affected by the Middle East crisis

How do I get heating oil compensation?

You're eligible for compensation if all of the following are true: 

• Your heating oil order was cancelled, following the outbreak of conflict in the Middle East;
• You bought replacement heating oil at a higher price;
• Your heating oil supplier has joined the CMA's compensation scheme.

If so, you'll be reimbursed the difference between the original and replacement order.

If you didn't buy replacement heating oil when your order was cancelled, your original order will be honoured at the agreed price.

You don't need to do anything to get your compensation. You'll be contacted directly. You'll need to show evidence of your replacement order, such as a receipt and delivery note.

Tips for heating oil customers

The UK & Ireland Fuel Distributors Association (UKIFDA) advises keeping at least 500 litres of heating oil in your tank to protect against bad weather, sudden spikes in demand or delivery delays.

It also recommends that you order well before your tank runs low. Emergency last-minute deliveries cost more and are harder for local suppliers to schedule in.

Read more: Getting the best heating oil prices.

What help is available for heating oil customers?

Additional support for those who heat their homes with oil was announced in March 2026 by then Prime Minister Keir Starmer.

He said that this support, worth £53m, will be focused on heating oil customers in vulnerable situations.

Local authorities can also choose to support households that use other fuels for heating, cooking or lighting (including LPG, biogas, electricity or mains gas).

The support is split by nation as follows: England £27m, Northern Ireland £17m, Scotland £4.6m and Wales £3.8m.

In Northern Ireland, Scotland and Wales, devolved governments will be allocated the money to support households. 

England

In England, local authorities are distributing the support via the new Crisis and Resilience Fund, in place from 1 April.

Low-income households and those in vulnerable situations should qualify, although the exact eligibility criteria will be set by local authorities.

Local authorities will also determine:

• the type of support you can get, including how much
• when you'll be able to get it (although the Treasury told us that funding should be made available to those in acute need as soon as possible)
• how you'll receive support.

Your local authority should have a dedicated Crisis and Resilience Fund website through which support is distributed. 

You can find your local council via gov.uk.

Northern Ireland

Households can get £100 towards their heating oil bills with a digital pre-paid card.

You need to use home heating oil as your main heating fuel and live in Northern Ireland. At least one of the following must also apply:

• Your household has a combined income of £30,000 or less (after tax, national insurance or pension contributions).
• You receive certain benefits, including pension credit.

You'll need to apply via NI Direct for the support before 31 March 2027. 

Scotland

The Scottish Emergency Oil Heating Scheme launched on 1 April, run by Advice Direct Scotland. The Scottish government added £5.4m extra to its fund to support low-income, oil-heated households. 

You may be able to get support if:

• You get a means-tested benefit.
• You're facing financial hardship.
• And you have additional vulnerabilities.

You'll need to apply via Home Heating Advice Scotland.

Wales

Welsh households in fuel poverty can get up to £750 towards off-grid fuel costs. 

This is through the existing Discretionary Assistance Fund (DAF), which the Welsh government announced will provide temporary extra support (up from £500).

You can apply for financial help if:

• You're experiencing an unexpected financial crisis.
• You have an address in Wales and are aged over 16.

You can apply more than once, as long as your requests are more than three months apart.

You'll need to apply via the Discretionary Assistance Fund on the Welsh Government website.

Heating oil companies under investigation

The CMA wrote to heating oil firms in September 2026 to remind them that terms and conditions in their consumer contracts must be fair and transparent.

In March 2026, the government said it plans to introduce new consumer protections for heating oil customers and is considering:

• a new Code of Practice giving more flexibility on the size of oil deliveries and improving price transparency. This would be agreed with industry 
• a Priority Customers Register so that those who are vulnerable can get priority support when there's disruption
• more repayment options for customers facing hardship
• creating a new Ombudsman or appointing a regulator for heating oil.

The Northern Ireland Executive will be involved to ensure new measures work for households in Northern Ireland too.

Why are heating oil prices rising?

Heating oil is kerosene-based, like jet fuel. The wholesale price of jet fuel more than doubled in the early stages of the Middle East conflict, according to the UKIFDA.

Heating oil is mostly supplied by refineries in the Middle East. In 2025, at least 40% of Europe's jet fuel supply came via the Strait of Hormuz, according to UKIFDA, which is largely blocked as part of the ongoing conflict. 

Volatile prices make it difficult for distributors to predict the cost of fuel they purchase. 

Some companies schedule orders from households in advance, but confirm prices closer to the delivery date. Not knowing what you'll pay makes it tricky to budget.

Unlike gas and electricity, heating oil prices aren't covered by the energy price cap, leaving customers vulnerable to price shocks.

Home energy planning tool

Use our free tool and we'll build you a personalised plan to help you lower your energy bills

Start your plan