Families who rely on heating oil have been hit with a sudden price surge of up to £100 in just a week, sparking fears some suppliers could be cashing in on the global energy crisis.
Consumer champion Martin Lewis raised the alarm after hearing claims that some households had existing orders cancelled and were told to rebook at far higher prices as markets convulsed.
The row prompted Energy Secretary Ed Miliband to warn the industry about price gouging, while the Competition and Markets Authority said it expects customers to receive heating oil at the price originally agreed.
Just got off the phone after @Ed_Miliband called to discuss in detail the problems people are facing with domestic energy bills and heating oil. Here's what I fed through - your feedback would be useful...
1. HEATING OIL: This is the most immediate concern as many, often in…— Martin Lewis (@MartinSLewis) March 7, 2026
What is heating oil and who uses it?
Around 1.5 million homes across the UK depend on heating oil, with the problem especially severe in Northern Ireland where the majority of households rely on it and do not benefit from the energy price cap overseen by Ofgem.
Heating oil is a fuel used to heat homes that are not connected to the mains gas network. It is stored in a tank outside the property and delivered by tanker, then burned in a boiler to provide heating and hot water.
The most common type used in households is kerosene, also known as 28-second oil, which burns relatively cleanly and works with most modern oil boilers. A heavier fuel called gas oil – sometimes known as 35-second oil or red diesel – is typically used in older systems, agriculture or commercial settings.
Homeowners must order the type that matches their boiler system. If it’s unclear, engineers certified by OFTEC can identify the correct fuel.
Why are oil prices rising so quickly?
Ministers fear the spike is being driven by turmoil in global oil markets linked to tensions around the strategically vital Strait of Hormuz, a key route for the world’s energy supplies.
The Competition and Markets Authority has now stepped in, warning suppliers they must honour the price agreed when an order was placed.
Emma Cochrane, the CMA’s acting executive director for consumer protection, said the watchdog “won’t hesitate to take action” if firms break the law.
“Generally we would expect customers who have placed orders for heating oil to receive it at the agreed price,” she said.
Government piles pressure on industry
Miliband and energy minister Michael Shanks have written to the UK and Ireland Fuel Distributors Association reminding companies they must stick to consumer protection rules.
The move comes as ministers fear the Middle East conflict could push energy costs sharply higher, particularly if disruption spreads through the global oil trade.
Peers in the House of Lords warned the fuel - essentially the same kerosene used in jet engines - has already seen “considerable spikes”, with the crisis tied to tensions around the strategically crucial Strait of Hormuz.
Recommended reading:
- Full list of DWP payments rising for parents, carers and families in 2026
- 'They’re my lifeline' stroke survivor fears losing dogs as pet surrender crisis hits
- Extra 53,000 disabled households to get help with sky-high water bills
‘Profiteering will not be tolerated’
Chancellor Rachel Reeves said regulators are keeping a close eye on fuel costs to prevent companies exploiting the crisis.
“I will not tolerate any company exploiting the current situation to make excess profits at consumers’ expense,” she told MPs.
Meanwhile, Lewis is urging households who have seen orders cancelled or prices suddenly hiked to come forward with details so the cases can be passed to ministers investigating the market.
Share