Stories

Mon, 12 Oct 2026

Mon, 12 Oct 2026 Heating oil customers face tough winter despite shake-up promise

Heating oil customers facing soaring bills are promised better regulation of the sector by the government.
The government has promised to regulate the heating oil sector more strictly, after prices soared by nearly double in the past year, leaving many customers struggling to afford their bills. Ministers say they will work with industry to develop a regulatory regime that protects consumers and promotes competition. This includes reviewing minimum order levels, which have been set at 500 litres for some customers, despite domestic tanks typically holding between 1,000 and 2,000 litres. Energy minister Polly Billington stated: "We won't accept that energy is an essential good yet people don't feel protected in the market." The government has accepted recommendations from the Competition and Markets Authority to strengthen regulation in the sector. Heating oil customers have been offered discounts on heat pumps and a code of practice has been put in place. However, campaigners are calling for heating oil customers to benefit from the same cap as regular variable gas and electricity tariffs in England, Scotland and Wales. The government's support package worth £53m for low-income families who use heating oil will be distributed by local authorities. The funding is for households who have been forced to "re-order at significantly higher prices or go without fuel" after the US-Israeli war with Iran broke out. Industry experts believe that stronger protections are needed, but a reduction in prices would require VAT to be removed from heating oil. It is likely Ofgem will regulate heating oil in England, Scotland and Wales, while Northern Ireland has separate regulation.