Heating oil prices more than doubled in a week, from around 66p per litre on 2 March to up to 138p per litre on 8 March, a 109% increase. About 1.7 million UK households rely on heating oil, facing a dramatic surge in costs with some bills more than doubling, according to reports. David Coverdale's heating oil cost rose from £592 for 1,000 litres on 20 February to £1,322 two weeks later, according to multiple reports.
Consumers are reporting severe hardships, including short deliveries and price gouging. Beverley Kenning ordered 500 litres of heating oil but received only 150 litres, according to multiple reports. She was told she would have to reorder the shortfall at a 45% markup, from 83p per litre to £1.20 per litre. Nicki Weetman paid £346 for 500 litres on 28 February but was refunded and quoted £841 to re-order on 9 March, according to multiple reports. Coverdale's order was cancelled and he was handed a larger bill a day before delivery.
The price increase is primarily attributed to the escalating conflict in the Middle East, including recent strikes on Iran and threats to the crucial Strait of Hormuz shipping channel, according to reports. The Strait of Hormuz has been effectively blocked to most international shipping since February 28, according to multiple reports. The price of heating oil has spiked in the aftermath of the US-Israeli war with Iran, according to research. About 40% of Europe’s jet fuel came from the Middle East in 2025, passing through the Strait of Hormuz, according to multiple reports.
The market structure exacerbates the crisis, as heating oil does not have a price cap like gas and electricity. Heating oil is typically bought on an as-and-when-needed basis, with around 120 providers in Britain, unlike gas and electricity with larger firms and contracts. There is a wide discrepancy in pricing due to the nature of how consumers order heating oil, according to research. Heating oil distributors are typically buying in the product every day or several times a week, paying the current market rate, according to research.
Regional impacts are severe, particularly in Scotland, Northern Ireland, and the East of England. About 130,000 Scottish households use heating oil, with average costs rising from 67.92p per litre on 28 February to 147p per litre by 8 March, according to multiple reports. About 500,000 homes in Northern Ireland use heating oil, almost two-thirds of all households. One in five homes in the East of England are not connected to the gas grid, relying on alternative heating, according to multiple reports. Some customers in Northern Ireland have reported an 81% increase in bills, while some in rural homes in England say prices have doubled, according to research.
The government has responded with support packages and regulatory actions. The government announced a £53M support package for households hit by higher heating oil costs. Sir Keir Starmer is set to pledge a £50 million support package to help households cope with spiralling energy costs in the wake of the Iran war. UK Energy Secretary Michael Shanks said regulations are in place through the CMA, with further investigations if necessary. The Competition and Markets Authority launched an investigation into the heating oil market.
Industry reactions include supplier statements and warnings from regulators. Tincknell Fuels said they were unable to fulfil orders due to stock issues and prices rocketing. Boiler Juice CEO Tim Buckman said they are aware of a small number of cancellations and are working with customers. The CMA warned suppliers against profiteering by hiking the price of heating oil for those who have already placed orders. BoilerJuice claimed the driver had run out of oil.
Secondary effects include increased theft risks and additional charges. Huge price spikes are leaving heating oil vulnerable to theft, with several properties in Woodbridge, Suffolk hit, according to multiple reports. John Birchall had about 800 litres of heating oil stolen from his tank, according to multiple reports. Some heating oil users are being forced to pay extra administration or service charges on top of increased bills, according to multiple reports. Some households report deductions for service charges from refunds for cancelled orders, according to multiple reports.
Personal stories highlight households cutting back and struggling to cope. Andrew Henderson ordered 500 litres of heating oil at 60p per litre before the war, a price that has since more than doubled, according to multiple reports. Andrew Henderson avoids using central heating and stays in bed to keep warm due to cost fears, according to multiple reports. William Ellis saw the price for 500 litres of heating oil jump from £284 to £735 in early March, according to multiple reports. As of Monday, she was being told a supplier could not be found in her area, according to reports.
Broader energy impacts include surges in petrol, diesel, and global oil prices. Petrol is up by 24.7p and diesel by 47.8p a litre since Feb 28, according to multiple reports. Average diesel price is 185.2p per litre, up 30% since the war started; petrol is 154.5p per litre, up 16%, according to multiple reports. The global oil price reached nearly $120 a barrel on Monday, a four-year high, though it has since fallen, according to research. The jump was sparked by fears of a lengthy disruption to supplies caused by the war, according to research.
Political pressure is mounting for investigations and policy changes. Conservative leader Kemi Badenoch has called for the CMA to go further and launch an investigation into the heating oil market, according to research. Energy secretary Ed Miliband hinted the government is open to halting its plans to raise fuel duty for the first time in more than a decade, according to research. Ministers have agreed money will be set aside to support the poorest households, the prime minister will announce on Monday, according to reports.
Supply chain dynamics show distributor challenges and stock issues. Heating oil distributors are typically buying in the product every day or several times a week, paying the current market rate, according to research. Only 3% of households in England and Wales said oil was their only source of central heating, according to a 2021 census, and 5% of households in Scotland, according to research.
The future outlook anticipates further increases and ongoing uncertainties. The Consumer Council NI anticipates further price increases. Heating oil prices dropped slightly to above 129p per litre on Wednesday, according to multiple reports.
Context on how heating oil systems work shows why users are vulnerable. Homes and businesses in remote areas or those built decades ago often have a tank that pumps oil directly into the property when required, according to research. The oil type used in this setup is typically kerosene-28 and it is usually ordered by phone or online from a local supplier when reserves run low, according to research. Heating oil prices are influenced by Europe's jet aircraft fuel market and supply from Middle East refineries, according to multiple reports.
Wider economic impacts include rising business costs and regional disparities. A family haulage firm calculated the war has increased their fuel bill by £100,000, according to multiple reports. LPG gas for patio heaters is also expected to see price rises due to the conflict, according to multiple reports.