Stories

Tue, 14 Jul 2026

Tue, 14 Jul 2026 Heating oil customers to get compensation after price hikes

The cost of heating oil spiked following the US-Israel war with Iran which forced up crude prices.

* Some suppliers have agreed to compensate customers, but regulators are planning legal action against those who refuse
* The Competition Markets Authority (CMA) investigated the heating oil market after wholesale prices jumped from $70 to almost $120 a barrel in February and March
* Average retail prices rose by 92% during this period, according to the CMA
* The regulator has recommended new regulations for how prices are quoted and cancellations are handled
* Chancellor Rachel Reeves said she is "concerned" about the lack of protection for households that rely on heating oil
* UKIFDA chief executive Ken Cronin said his organisation will work with government bodies to implement the CMA's recommendations
* Details of the compensation scheme have not been disclosed, but customers who paid more for replacement oil will receive a payment covering the difference
* Those who did not buy replacement oil will have their original orders honoured at the agreed price