Prime Minister Keir Starmer is set to announce tens of millions of pounds in support for households hit by a spike in heating oil prices, driven by the conflict with Iran. The announcement will be made during a Downing Street press conference on Monday, where Starmer will also criticise suppliers accused of price gouging.
The support package is primarily aimed at the estimated 1.7 million UK households that use heating oil, many of which are in rural areas, including Northern Ireland. These households are not covered by Ofgem's energy price cap, leaving them vulnerable to market fluctuations.
Oil prices have surged following the effective closure of the Strait of Hormuz, a critical passage for global oil supplies. The impact is being felt at petrol stations and by heating oil users, prompting government intervention. The Guardian reported last week that help will be delivered through councils in England via the crisis and resilience fund, while devolved governments in Scotland, Wales and Northern Ireland will receive separate funding.
Starmer will also address concerns about supplier behaviour, following warnings from the Competition and Markets Authority (CMA) that some suppliers have cancelled or renegotiated agreed deliveries. The CMA has launched a review and written to suppliers requesting contract information. Starmer is expected to say: 'I will not tolerate companies trying to exploit this crisis to make money from working people.'
Ministers have not ruled out cancelling a planned fuel duty rise in September. Energy Secretary Ed Miliband told the BBC: 'We will stand by the British people in this crisis, and we'll do what it takes to do that.'
