Heating oil users facing fuel or food winter choice

Key points

• Heating oil users face much higher prices than last year, forcing some to buy smaller amounts at a time.
• Ministers said they will tighten rules, promote competition and improve compensation for heating oil customers.
• Campaigners want VAT cut and a price cap similar to mains gas and electricity, saying regulation plans fall short.

People who heat their homes with heating oil are facing much higher prices than last winter, with some forced to choose between fuel and food. The rise follows an increase in oil prices since the start of the Iran war.

Liz Humphris, from Bishop's Castle in Shropshire, said she now orders only 500 litres at a time because it costs too much. She said 500 litres now costs over £500, a huge jump.

What ministers announced

Ministers said on Tuesday they would tighten up rules, promote competition and give customers clearer compensation routes if things go wrong. Minimum order levels set for some customers will be reviewed.

The government did not promise a price cap, but said it would work to "develop a regulatory regime for the heating oil market, protecting consumers and promoting competition."

It is costing over £500 for 500 litres, so it has gone up hugely.

— Liz Humphris

Impact in Shropshire

Shropshire Council says about 15 per cent of households in its area rely on oil-fuelled central heating, between 16,000 and 21,000 properties. In the South Shropshire constituency, 53 per cent of homes have no mains gas, one of the highest rates in the UK.

Co-operatives have formed to bulk buy heating oil at cheaper prices, including one set up by the charity Community Resource. Hanna Clarke, the charity's fundraising lead, said people coming to them are struggling with rising prices.

Clarke said heating oil differs from electricity and gas because it cannot be spread over 12 months by direct debit, and many suppliers have minimum orders. She said people cannot afford the big increase in the cost per unit.

Campaigners seek more action

Action with Communities in Rural England said the government's move to regulate the heating oil market did not go far enough. Chief executive Corrine Pluchino called for an immediate cut to VAT on heating oil and LPG.

Pluchino said the action would not address the fundamental problem for the 1.7 million UK households off the gas grid, mostly in rural areas. She said the real issue is the high and volatile price of heating oil, which adds hundreds of pounds because fuel must be bought in bulk.