UK to Launch Support for Households Facing Soaring Heating Oil Costs
The surge in costs comes after the escalation of the US-Israeli conflict with Iran, which pushed crude oil prices above $100 (£75) per barrel—a significant jump from the $71 per barrel seen before the tensions began.
Over the weekend, Chancellor Rachel Reeves stated that she had "found the money" to provide assistance.
Prime Minister Sir Keir Starmer is scheduled to announce the support package, reportedly totaling £50 million, during a press briefing on Monday. He is also anticipated to declare that he will "not tolerate companies trying to exploit this crisis," responding to recent allegations of price gouging.
Unlike households that rely on gas or electricity, which benefit from price caps enforced by the regulator Ofgem, heating oil users do not have similar protections. This has left them among the first to feel the full effect of rising crude oil prices, with some reporting that their bills have doubled.
The situation is especially pronounced in Northern Ireland, where roughly 500,000 homes—nearly two-thirds of the population—depend on heating oil. In England and Wales, around 3% of households rely exclusively on oil for central heating, while in Scotland the figure is about 5%, according to a 2021 census.
Last week, Reeves criticized some heating oil companies for using the Middle East crisis as "an opportunity to rip off consumers," and requested the Competition and Markets Authority (CMA) to investigate the matter.
In response, the UK and Ireland Fuel Distributors Association, which represents suppliers, stated that its members had experienced "a very large and unexpected increase in demand."
"We have spoken to many distributors who, despite the very large price swings and demand, are honouring orders as quickly as they can. We know that the CMA is monitoring this, and we support this approach."
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