Heating oil crisis deepens as ministers consider support

The heating oil crisis affecting rural households and farm businesses has intensified, with the competition watchdog launching an investigation into suppliers and ministers preparing targeted support for those most exposed to rising fuel costs.

The Competition and Markets Authority (CMA) has begun gathering evidence from heating oil companies after complaints from customers that existing orders were cancelled and replaced with quotes at significantly higher prices.

The surge follows sharp volatility in global oil markets linked to the ongoing conflict in the Middle East, which has driven up the price of kerosene – the fuel widely used to heat rural homes and farm buildings.

See also: Heating oil and haulage hit by Middle East conflict

About 1.7m households in England and Wales rely on heating oil, while the fuel is even more important in Northern Ireland, where around 62% of homes depend on it for heating and hot water.

The issue is particularly acute for farmers and rural businesses, which rely heavily on fuel not only for heating homes but also for powering vehicles, machinery and supply chains.

Unlike gas and electricity bills regulated by Ofgem, heating oil prices are not capped and can fluctuate rapidly with global oil markets.

The watchdog said it had received reports of orders being cancelled before delivery and customers being offered new supplies at sharply increased prices, as well as automatic top-up deliveries being charged at higher rates.

CMA chief executive Sarah Cardell said the authority was moving quickly to examine the complaints.

“We know many households are worried about rising prices as global events push up wholesale oil costs,” she said. “It’s inevitable that some prices will rise, but they should reflect genuine cost pressures.”

Government mulls support

Meanwhile, chancellor Rachel Reeves has confirmed the Treasury is working on targeted support for households struggling with soaring heating oil bills, particularly those not protected by the energy price cap.

Speaking over the weekend, she said ministers were looking at “different options” to help those most vulnerable to rising energy costs, with a support package expected to be announced shortly.

Energy secretary Ed Miliband has also met industry representatives and the CMA to discuss concerns about fuel pricing and supply.

Tips to prevent heating oil theft on farms and homes

With theft of heating oil on the rise amid higher prices, simple security measures can reduce the risk of costly losses:

  • Ensure tanks are visible from the house but not easily seen from the road.
  • Keep gates and boundaries locked to limit opportunistic access.
  • Fit a lockable cap or padlock, oil level alarm or remote sensor to alert you to sudden drops in fuel levels.
  • Motion‑activated lights, CCTV or defensive planting such as thorny shrubs around tanks can also deter thieves.
  • If theft occurs or you spot suspicious activity, report it promptly to police.

(Source: Police Service of Northern Ireland)