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Ministers promise to regulate heating oil after prices nearly doubled in a year
UK ministers have promised to regulate heating oil, a market 1.5 million households depend on, after prices nearly doubled in a year. The BBC reports no start date for the stricter rules and no sign of a price cap, so customers enter winter with the protections already in place.
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Some 1.5 million households depend on heating oil. CMA found 1,700 households forced to re-order at higher prices or go without, costing up to £350. A £53m package for low-income families was announced in March. A 500-litre minimum order is under review. A customer was quoted 111p a litre.
- 1,500,000 households Households depending on heating oil, some, claim 14
- 1,700 households Households forced to re-order or go without, CMA found, claim 9 costing them up to £350
- £53m March Low-income family support, claim 8
- 500 litres Minimum order for some consumers, claim 2 practice to be reviewed
- 111 p per litre A customer's quote, claim 19
| Figure | Value | Note | Claim |
|---|---|---|---|
| Households depending on heating oil, some | 1,500,000 households | 14 | |
| Households forced to re-order or go without, CMA found | 1,700 households | costing them up to £350 | 9 |
| Low-income family support | £53m March | 8 | |
| Minimum order for some consumers | 500 litres | practice to be reviewed | 2 |
| A customer's quote | 111 p per litre | 19 |
What happened
- Ministers say they will tighten the rules, promote competition and give customers clearer routes to compensation when things go wrong.
- Industry practice sets a 500-litre minimum order for some consumers, and that practice will now be reviewed.
- A Competition and Markets Authority inquiry found 1,700 households were pushed to re-order at significantly higher prices or go without fuel, at a cost of up to £350.
- In March the government announced £53m for low-income heating oil families, paid out by local authorities that set their own eligibility criteria.
Why it matters
- cost At the 111p a litre one West Suffolk customer was quoted, a 500-litre minimum is a £555 outlay, so the review decides how much cash a household must commit up front.
- contradiction The government frames the fix as protection and competition, while Boiler Juice's chief executive says the problem is the price level. A conduct regime addresses only the first.
- exposure Households in Northern Ireland sit outside any regime built on Ofgem's remit and wait on a separate decision by the Executive.
- constraint Until a regime is designed and dated, the protections in place are a code of practice, heat pump discounts and council-run aid.
The government's stated aim is protection and competition, and neither sets a price. Ministers said they would work with industry to "develop a regulatory regime for the heating oil market, protecting consumers and promoting competition" [17]. Energy minister Polly Billington said: "Thousands of heating oil customers felt they had nowhere to turn when they paid the price of rising oil and gas costs earlier this year." [11]
Tim Buckman, chief executive of the price comparison site Boiler Juice, put the objection to the BBC. He wants stronger consumer protection, but told the BBC the main problem is that heating oil is twice as expensive as before the war [13]. Buckman said: "Just putting regulation in place is not going to reduce the price for customers. What we would like to see is the VAT off heating oil or targeting that specifically." [12]
In our view he is right about what a conduct regime can do. Campaigners, including the charity National Energy Action, want the cap that covers standard variable gas and electricity tariffs extended to heating oil [7]. A cap sets a price, and the regime ministers describe covers rules, competition and compensation.
The order-size review is the part of the package that changes what a customer must buy. A 500-litre minimum is between a quarter and a half of a tank, measured against domestic tanks that typically hold 1,000 to 2,000 litres [d1, c3]. The government said the practice had left some people paying for more heating oil than they might need [4].
The geography limits the reach. Ofgem sets the standard variable tariff cap and covers only England, Wales and Scotland [15]. The BBC says it is likely to regulate heating oil there [22]. The BBC also reports that most heating oil customers are in Northern Ireland, where 60% of households rely on it and where regulation is separate [16]. The UK government said it would "engage with the Northern Ireland Executive as they consider these recommendations in parallel" [23].
Sequencing is where the promise is thinnest. Because ministers will develop the regime with industry [17], the design work is still ahead, and the BBC found no sign of when the stricter rules take effect [6]. In our view this winter's orders will be placed under the protections already in place. If the rules arrive after the heating season, the 500-litre review would first affect next winter's orders. We do not know yet whether the review will report before then.
What to watch
- Whether the government publishes a start date for the regime or a reporting date for the 500-litre minimum order review.
- Whether ministers respond to the demands for a heating oil price cap or for VAT to come off heating oil.
- What the Northern Ireland Executive decides on the CMA's recommendations, since regulation there is separate.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence45
- Adoption
- Insufficient
- Hype gap+30
- Incentives50
- Confidence55
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
Ministers say they will tighten up rules, promote competition and give customers clearer compensation routes if things go wrong.
- [2]
Industry practices setting minimum order volumes at 500 litres for some consumers will be reviewed.
- [4]
The government said the 500-litre minimum order practice had left some people having to pay for more heating oil than they might need.
- [5]
Heating oil prices are close to having doubled in the past year.
- [6]
There is no sign of the government proposing a heating oil price cap like the one on regular variable gas and electricity tariffs, nor of when the stricter rules will take effect.
- [7]
Some campaigners, and the charity National Energy Action, have called for heating oil customers to benefit from the same price cap as regular variable gas and electricity tariffs.
- [8]
In March the government announced a £53m support package for low-income families who use heating oil, distributed by local authorities that set their own eligibility criteria.
- [9]
The Competition and Markets Authority found that 1,700 households were forced to "re-order at significantly higher prices or go without fuel" after the war broke out, costing them up to £350.
- [10]
The government has announced it will accept the CMA's recommendation to strengthen regulation in the heating oil sector.
- [11]
Energy minister Polly Billington said: "Thousands of heating oil customers felt they had nowhere to turn when they paid the price of rising oil and gas costs earlier this year."
- [12]
Tim Buckman said: "Just putting regulation in place is not going to reduce the price for customers. What we would like to see is the VAT off heating oil or targeting that specifically."
- [13]
Tim Buckman, chief executive of price comparison site Boiler Juice, told the BBC he wants stronger protections for consumers but the main problem is that heating oil is twice as expensive as it was before the war.
- [14]
Some 1.5 million households depend on heating oil, but they do not have the same consumer protections as electricity and gas customers.
- [15]
Ofgem, which sets the cap for standard variable tariffs, only covers England, Wales and Scotland.
- [16]
Most heating oil customers are in Northern Ireland, where 60% of households rely on it, but where regulation is separate.
- [17]
Ministers said they would work with industry to "develop a regulatory regime for the heating oil market, protecting consumers and promoting competition".
- [18]
In the meantime, oil users have been offered discounts on heat pumps and a code of practice is in place.
- [19]
A heating oil customer from West Suffolk, Nick, told the BBC his household had seen prices more than double in a year, to quotes of 111p per litre.
- [20]
A 500-litre minimum order is 50% of a 1,000-litre tank and 25% of a 2,000-litre tank, so between a quarter and a half of a typical domestic tank.
- [21]
At 111p per litre, a 500-litre order costs £555.
- [22]
It is likely Ofgem will regulate heating oil in England, Scotland and Wales.
- [23]
The UK government said it would "engage with the Northern Ireland Executive as they consider these recommendations in parallel".
Sources
1 independent publisher whose own reporting we read for this story.
- bbc.co.ukHeating oil customers face tough winter despite shake-up promise
1 article · October 12, 2026
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