Heating Oil Users Warn of Winter Hardship as Government Pledges Regulatory Reform

Customers relying on heating oil have been promised improved government oversight of the sector, yet many fear they will still endure a difficult winter amid skyrocketing costs. Ministers have committed to tightening rules, fostering competition, and establishing clearer compensation pathways for consumers.

While the government plans to review minimum order levels, which currently require some users to purchase as much as 500 litres at a time, there are no indications that heating oil will be brought under the same price cap as standard gas and electricity tariffs in England, Scotland, and Wales.

The CMA found that 1,700 households were forced to re-order at significantly higher prices or go without fuel after the war broke out in the Middle East, with some losing up to £350. In response, the government has accepted the watchdog’s recommendations to strengthen market regulation.

Heating oil customers, many of whom live off the gas grid, are grappling with prices that have nearly doubled over the past year. Industry experts note that 500-litre minimum orders often exceed the capacity of domestic tanks, forcing consumers to pay for fuel they may not need.

As energy prices continue to climb, advocacy groups are calling for VAT to be removed from heating oil or for the fuel to be included in the existing price cap, which is currently administered by Ofgem and applies only to electricity and gas customers in Great Britain.

Energy minister Polly Billington stated that the government will not accept a situation where consumers feel unprotected in the energy market, describing energy as an essential good. The government also plans to engage with the Northern Ireland Executive regarding the implementation of these regulatory changes.

With approximately 1.5 million households depending on heating oil, the lack of immediate price relief continues to draw criticism from campaigners who view off-grid energy users as a policy blind spot.