Hundreds of heating oil customers are set to receive compensation after their orders were cancelled following the conflict in the Middle East. The cancellations came after heating oil prices surged at the start of the Iran war, leaving families forced to either buy replacement fuel at a higher price, or go without heating.
CMA secures compensation from suppliers
The Competition and Markets Authority (CMA) estimates customers may have paid between £150 and £350 more for replacement heating oil. Average prices for heating oil increased by 64% from February to March this year, and peaked at 123 pence per litre in April 2026 – a 92% increase from February.
The CMA has now secured compensation from suppliers after finding that hundreds of customers who ordered through an intermediary site were impacted. Customers whose suppliers have joined the compensation scheme, and who paid more for replacement oil, will receive a payment covering the difference between the original and replacement order.
What customers need to know
If you are due compensation, you do not need to do anything and you will be contacted directly. The CMA said around 800 customers have already been notified. Around 1.5 million households in the UK rely on heating oil to warm their homes and provide hot water.
Sarah Cardell, Chief Executive of the CMA, said: “Heating oil isn’t a luxury, it’s a necessity that many people rely on to have hot water and warm homes. During the price spikes earlier this year, hundreds of customers were left out of pocket or without fuel after their orders were cancelled. That’s why we’ve pressed suppliers to put it right. They’ve now agreed to compensate those affected by issuing compensation or honouring their original contracts.”
Government support packages
The UK government previously announced a £53million support package for low-income rural households and off-grid communities struggling with high heating oil costs. The support is distributed by councils. Meanwhile, the Northern Ireland government has also announced a one-off £100 voucher to put toward heating oil, with applications set to open next month.
Applications will be made via the NIdirect government website from September 9. Heating oil is very common in Northern Ireland and remains the primary method of heating for more than 60% of households. Heating oil is not covered by the Ofgem price cap.
