The surge in heating oil prices has been driven by the disruption of the Strait of Hormuz due to the US-Israeli war with Iran, which has affected global oil supplies and pushed the global oil price to nearly $120 a barrel, a four-year high, according to multiple reports. The UK is considering sending minehunting drones to help reopen the strait, as reported by uk.finance.yahoo.com.
Many suppliers have cancelled orders or delivered only partial amounts after prices rose, leaving customers in difficult situations. Beverley Kenning said she ordered 500 litres at 83p per litre but received only 150 litres and was told to reorder at £1.20 per litre. David Coverdale paid £592 for 1000 litres on 20 February but the order was cancelled and he was quoted £1,322. Nicki Weetman, who is undergoing chemotherapy, had her order cancelled and was quoted £841 after paying £346. Some suppliers are also charging extra administration or service charges on top of higher prices, according to Martin Lewis's MoneySavingExpert. William Ellis, 73, saw the price for 500 litres rise from £284 to £735, as reported by the BBC. Fran Barrett, a teacher in Cheshire, said prices doubled and she is now unable to secure a delivery, according to the Guardian.
Heating oil thefts have increased, with Suffolk Police reporting several properties hit in Woodbridge. Meanwhile, some customers are resorting to extreme measures to conserve oil. Andrew Henderson, 67, said he stays in bed to keep warm to avoid using heating oil.
Treasury officials have 'found the money' to help homes and businesses using heating oil.
The UK government has announced support packages, but there is confusion over the exact amount. The government says it has announced a £53 million support package, while Sir Keir Starmer is set to pledge a £50 million support package, according to uk.finance.yahoo.com. Chancellor Rachel Reeves said Treasury officials have 'found the money' to help homes and businesses using heating oil and promised meetings between the Treasury and rural and Northern Ireland MPs.
The Competition and Markets Authority has launched an investigation into the heating oil market and warned suppliers against profiteering by hiking the price of heating oil for those who have already placed orders. Conservative leader Kemi Badenoch has also called for the CMA to launch an investigation.
In Northern Ireland, where almost two-thirds of households use heating oil, some customers have reported an 81% increase in bills. Local businesses like Andy's Oil in County Armagh are operating at a loss due to supplier price increases and panic buying, according to owner Andy Douglas. The Consumer Council NI anticipates further price increases.
There was 'price gouging' in the heating oil market.
The Irish Labour Party has accused importers of 'price gouging' and called for a maximum price order, according to spokesperson George Lawlor TD. Chancellor Rachel Reeves also said there was 'price gouging' in the heating oil market.
Petrol and diesel prices have also risen significantly since late February, with petrol up 24.7p per litre and diesel up 47.8p per litre, according to the RAC. A family haulage firm calculated its fuel bill increased by £100,000 due to the war, according to Stuart Wring. LPG gas for patio heaters is also expected to see price rises, according to multiple reports.
Energy secretary Ed Miliband hinted the government is open to halting plans to raise fuel duty, according to uk.finance.yahoo.com. The exact amount of the government support package and how it will be distributed remains unclear, as does the precise number of affected households.