‘Troubling reports’ of sudden heating oil price hikes and cancelled orders across UK
Britain’s competition watchdog has launched an investigation into “troubling reports” of sudden price hikes for heating oil, impacting households already grappling with the fallout from Middle East conflict.
The Competition and Markets Authority (CMA) confirmed it had initiated a review following numerous complaints from customers.
These include allegations that existing orders for heating oil have been cancelled, only for customers to be subsequently offered new quotes at significantly inflated rates.
The CMA is also probing cases where households have faced unexpected price increases for automated deliveries, which are typically triggered when fuel levels in a tank drop to a certain threshold.
Approximately 1.5 million homes across the UK rely on heating oil for warmth, and recent volatility in the global oil market has seen prices surge by as much as £100 in just the last week.
The issue is particularly acute in Northern Ireland, where a staggering 62.5 per cent of homes depend on the fuel, starkly contrasting with the UK average of just over 5 per cent.
Heating oil customers fall outside Ofgem’s energy price cap protection, which currently fixes prices until the end of June.
The CMA said it was writing to heating oil suppliers and intermediaries “as a matter of urgency” to gather evidence and consider whether the behaviour breaches consumer protection laws – which could result in enforcement action.
It stressed that it should not be assumed that any businesses have broken the law, and that many retailers are facing significant pressures from rising wholesale costs.
Sarah Cardell, chief executive of the CMA, said: “We know many households are worried about rising prices as global events push up wholesale oil costs.
“It’s inevitable that some prices will rise, but they should reflect genuine cost pressures.
“We’ve heard troubling reports from heating oil customers about cancelled orders and sudden price increases – and are moving quickly to get to the bottom of these concerns.
“As always, we stand by consumers and will make sure they are treated fairly.”
Chancellor Rachel Reeves said she was going to be meeting the CMA on Thursday and said the Government was working with the watchdog to tackle “any price gouging” in heating oil.
