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Start your planHeating oil prices spike amid Middle East conflict: here's what you can do
Customers are reporting cancelled orders and sudden price increases
Oil-heated households are seeing sudden price increases across the UK and Ireland amid the ongoing conflict in the Middle East.
We've seen reports of customers having heating oil orders cancelled, being quoted far higher prices than before the conflict began, and struggling to place an order from their usual supplier or having to wait longer than usual.
Two main issues with heating oil prices have been identified by the Competition and Markets Authority (CMA):
- Existing orders for heating oil are being cancelled, and customers offered new quotes at significantly higher prices
- Prices for automated deliveries are increasing
Heating oil powers around 1.5 million UK homes, mainly in rural areas. It's also the main source of fuel for heating in Northern Ireland.
It's not just oil-heated homes affected by price changes. Find out how the Middle East crisis might impact your bills
Tips for heating oil customers
If your tank is running low, the UK & Ireland Fuel Distributors Association (UKIFDA) advises to order as normal. Otherwise:
- Talk to your local distributors and check online platforms
- If you can delay purchasing, consider waiting
- Ask about smaller deliveries, but be aware that more frequent deliveries may increase your overall cost
Read more: Getting the best heating oil prices.
What help is available for heating oil customers?
No new measures have been announced by the government to help heating oil customers.
The Competition and Markets Authority (CMA) says it's writing to heating oil firms to find out more about their practices at this time.
It could take enforcement action if it finds that companies have broken consumer protection rules.
Sarah Cardell, Chief Executive of the CMA, said: 'We’ve heard troubling reports from heating oil customers about cancelled orders and sudden price increases – and are moving quickly to get to the bottom of these concerns. As always, we stand by consumers and will make sure they are treated fairly.'
Chancellor Rachel Reeves told parliament earlier this week that officials would meet MPs in rural areas and Northern Ireland to explore 'further action'.
Why are heating oil prices rising?
Heating oil is kerosene-based, like jet fuel. The wholesale price of jet fuel has more than doubled since the recent Middle East conflict began, according to the UKIFDA, with prices at a three-and-a-half-year peak.
Volatile prices make it difficult for distributors to predict the cost of fuel they purchase.
Some are therefore scheduling orders from households in advance, but confirming 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.
