PM to set out support plan for heating oil costs

"The price of heating oil has spiked since the outbreak of the US-Israeli war with Iran, as the cost of crude oil has jumped above $100 (75) a barrel - it was $71 a barrel before the conflict began. Prime Minister Sir Keir Starmer will set out the support plans - reportedly costing 50m - at a news conference on Monday."

"Unlike consumers who use gas and electricity for heating and hot water, prices for households using heating oil are not capped by regulator Ofgem. The issue is particularly acute in Northern Ireland, where about 500,000 homes use it, almost two-thirds of all households."

"Last week, Reeves said some heating oil companies were using the Middle East crisis as "an opportunity to rip off consumers" and asked the Competition and Markets Authority (CMA) to look into the issue. "If the companies have broken the law, there will be legal action," he is expected to say."

Heating oil prices have surged above $100 per barrel following the US-Israeli conflict with Iran, up from $71 before the outbreak. The government will announce support plans costing £50m, with Prime Minister Sir Keir Starmer warning against companies exploiting the crisis. Unlike gas and electricity, heating oil prices lack regulatory caps from Ofgem. Northern Ireland is particularly affected, with approximately 500,000 homes relying on heating oil—nearly two-thirds of households. England, Wales, and Scotland have smaller proportions using oil for central heating. The Competition and Markets Authority is investigating potential price gouging, while heating oil suppliers cite unexpected demand surges. Legal action is threatened against companies breaking the law.

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