Heating oil prices have reached 111p per litre, according to price comparison site Boiler Juice. This marks a significant increase from approximately 60p per litre before March of this year, when the war in Iran began, causing prices to jump to 134p per litre.
The rise is affecting the estimated 1.5 million people across the UK who are not connected to the mains gas network and depend on heating oil, with the majority residing in rural areas. The unregulated nature of the heating oil market means that global price fluctuations are rapidly reflected in customer costs.
Current supply issues, influenced by tensions in the Middle East and the ongoing war in Ukraine, are contributing to the rising prices. Peter Mason, a resident of Minety, north Wiltshire, stated that filling his tank for winter will cost over £550, compared to about £300 last year.
Businesses are also feeling the impact. Dylan Williams, owner of Van & I of Monmouth, Wales, has increased service prices to offset higher fuel costs. Yvette Farrell of Dean Forest Kitchen noted that the cost of fuel is severely affecting their not-for-profit business, potentially leading to price increases for their meal delivery service to isolated clients.
The Competitions and Markets Authority (CMA) has highlighted the vulnerability of heating oil customers in remote areas to price shocks. CMA chief executive Sarah Cardell called for stronger safeguards, including regulatory oversight and improved support for vulnerable consumers and communities.
Action in Rural Communities England is advocating for the government to remove VAT on heating oil and LPG for six months in this month's budget. The Department for the Environment and Net Zero mentioned grants of £9,000 to help households switch to clean heat and a resilience fund for areas with higher rates of oil heating.