Households that depend on heating oil are experiencing significant price increases as the conflict in the Middle East impacts global oil markets.
Approximately 1.5 million homes in the UK use heating oil, and prices have risen by as much as £100 in just the past week.
The situation is most acute in Northern Ireland, where 62.5% of homes rely on heating oil, compared to just over 5% across the rest of the UK.
Unlike households on standard energy tariffs, heating oil customers are not protected by Ofgem’s energy price cap, which remains in effect until the end of June.
The End Fuel Poverty Coalition referenced a customer who was recently quoted £985 for 1,000 litres of heating oil, up from £670 in January.
Wholesale prices have surged due to US and Israeli strikes on Iran, as well as retaliatory Iranian attacks on Gulf oil and gas infrastructure.
Additionally, Tehran has warned ships against using the Strait of Hormuz, a crucial shipping lane through which about 20% of global oil and gas pass, further increasing pressure on energy markets worldwide.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “Households that rely on heating oil are often some of the most exposed to global fossil fuel price shocks because they sit outside the energy price cap.
“These homes are also those that are among the deepest fuel poverty as the cost of home improvements which could help reduce the cost of energy can be prohibitive.
“This means that when overseas conflicts send oil prices soaring, the cost of heating for families in rural and off-grid homes can jump almost overnight.
“While other households are protected by the energy price cap for now, homes heated by oil are starting to suffer now and may need urgent support.”
Francis added: “This is another harsh reminder that relying on volatile fossil fuel markets leaves households vulnerable.
“The long-term answer has to be looking at alternative heating systems and creating warmer homes by supporting people who need to improve energy efficiency.”
Speaking in the House of Commons on Thursday, Energy Secretary Ed Miliband told MPs: We will look at that issue. And indeed, I go back to the wider point I made, that both the Chancellor and the PM have shown determination to act on the cost-of-living crisis.”
