The surging rise in prices of heating oil has been raised with industry officials by Stirling’s MP as concerns over the impact on the colder months loom into view.
The price of heating oil, which is particularly popular in rural parts of Stirling, has doubled following the beginning of the US conflict in Iran. UK Government ministers confirmed that the Competition and Markets Authority (CMA) had begun a probe into the sector.
Stirling and Strathallan MP Chris Kane submitted a written question to ministers following concerns raised by constituents on those discussions with the CMA over potential reforms to improve consumer protection in the sector.
In response, ministers confirmed that they are working closely with the CMA, which has launched an urgent investigation into the heating oil market following widespread reports of price spikes, cancelled orders, and poor consumer experiences. The response added that ministers were meeting regularly with the CMA and will work jointly to assess the findings of the ongoing market study, which is due to report later in June. They confirmed that the outcome will be used to develop options to strengthen consumer protections if required.
Following the response, Mr Kane said: “It is clear to me that the Government need to look at reforming the heating oil market, because too many local people are exposed to pricing shocks and unreliable service. So I am glad that the response confirms that the Government is now actively working with the regulator and is prepared to consider stronger protections based on the CMA’s findings. It is particularly important that there are real consequences if companies have not treated customers fairly, and that any gaps in regulation are addressed quickly. For many households, especially in rural areas, heating oil is essential - so the market must be fair, transparent and properly regulated.”
The CMA is expected to publish its findings later this month, with the potential for further action or reform depending on the outcome. The Stirling politician added the need for greater partnership working on the issue of fuel poverty and that he would continue to press for improvements ahead of the review being published.
“Fuel poverty, and the inability to heat homes adequately is a direct consequence of inadequate regulation, together with poor targeting with regards to fuel poverty measures,” Mr Kane continued. “It cannot be right that where for the majority of households across the UK there is an energy price cap and policy designed to protect people from shocks, that households dependent on oil are not afforded similar protections. We know that in rural areas there are more vulnerable and elderly people and that the housing stock is older and harder to insulate. It is therefore no surprise that fuel poverty is higher in rural areas. However, to address the issue we need a partnership approach, with specific targeted action. Having spoken with many constituents on this issue it is clear to me that both the UK Government and the Scottish Government need to be working together to fully address wider issues around fuel poverty in rural areas. As such I will be writing to both the Scottish Government and UK ministers on what further measures could be taken to specifically address rural fuel poverty.”
