The Competition and Markets Authority (CMA) has launched an investigation into heating oil suppliers following accusations of profiteering from the conflict in the Middle East. The watchdog said it had received “a number of concerning reports” from households reliant on heating oil about suppliers’ behaviour at a time of rising wholesale costs.
About 1.7 million UK households, mostly in rural areas not connected to the mains gas network, rely on heating oil for warmth, cooking and hot water. The CMA will examine complaints including existing orders being cancelled and re-quoted at significantly higher prices, as well as price increases for automated deliveries triggered when oil tanks drop to a certain level.
Harriet Cross, Conservative MP for Gordon and Buchan, called for the investigation after constituents reported sudden price hikes. The cost of 700 litres of heating oil has doubled from £500 before the US and Israel launched attacks on Iran to over £1,000, with delivery times also extended. Cross described the behaviour as “blatant profiteering” and called for a mandatory price transparency scheme.
Chancellor Rachel Reeves criticised heating oil companies, telling MPs she was “looking at some of those market practices”. The government said Reeves had written to the CMA, asking it to be “vigilant” in examining heating oil prices and to recommend if further regulation is needed. Heating oil prices are not covered by Ofgem’s energy price cap and are linked to jet fuel costs, which are more reliant on Gulf suppliers.
