The UK government is preparing to introduce a support package to help households struggling with the rising cost of heating oil, as global energy prices surge following the conflict involving the United States, Israel, and Iran.
Prime Minister Keir Starmer is expected to outline the support plan at a press conference, with reports suggesting the scheme could cost around £50 million. The government aims to ease the financial pressure on households that rely on heating oil for their homes.
The price of crude oil has surged above $100 per barrel since the conflict began, compared to about $71 before the crisis. This sharp increase has driven heating oil prices higher, leaving many households facing significantly larger energy bills.
Chancellor Rachel Reeves recently said the government had secured funding to support affected families. She also accused some suppliers of taking advantage of the crisis, warning against companies exploiting consumers during a time of global uncertainty.
Unlike gas and electricity, heating oil prices are not capped by the energy regulator Ofgem, meaning households using oil heating feel price changes more quickly.
The problem is particularly severe in Northern Ireland, where roughly 500,000 homes rely on heating oil, representing nearly two-thirds of all households. Smaller percentages of homes in England, Wales, and Scotland also depend on oil heating.
To address concerns about possible price manipulation, the government has asked the Competition and Markets Authority to investigate whether suppliers are unfairly raising prices.
The head of the regulator, Sarah Cardell, confirmed that the authority is closely monitoring the situation and warned that enforcement action would be taken if companies are found to have broken competition laws.
The surge in oil prices has largely been driven by disruptions to global supply routes, especially the Strait of Hormuz, a key shipping passage responsible for transporting around a fifth of the world’s oil.
While households using gas and electricity remain protected by the energy price cap, future energy bills will depend on how wholesale markets perform in the coming months.
Government officials say they are prepared to take further action if rising energy prices begin to significantly affect households across the country.
