Fuel Oil: Prices
(asked on 9th October 2026) - View Source
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment her Department has made of the potential merits of introducing mechanisms in the consumer heating oil market, including price protection and price-smoothing, to limit the potential impact of extreme short-term price increases caused by international conflicts on consumers.
Answered by
Polly Billington
Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
This government is determined to ensure consumers reliant on heating oil are treated fairly and better protected, including during times of international volatility.
The CMA found that recent increases in heating oil prices were largely driven by higher wholesale costs rather than a lack of competition or excessive profits.
The government published its formal response to the CMA heating oil report on 13 October, confirming it will take forward proposals to introduce stronger regulations for the first time, and agreeing with the CMA that we will not be replicating the gas and electricity price cap. Instead, we will focus on a programme of reform to strengthening consumer protections.
However, this government does recognise the impact that heating oil price increases has had on households, which is why we took action to introduce over £50m of support to help with costs. Households can access immediate support from their local authority through the Crisis and Resilience Fund.
A Written Ministerial Statement can be found here: Written statements - Written questions, answers and statements - UK Parliament
The full response can be found here: Government response to the CMA heating oil market study - GOV.UK
For those considering alternatives to oil heating, the Government is supporting the installation of low-carbon heating through the Boiler Upgrade Scheme. A time-limited higher grant of £9,000 is available to the end of March 2027 for eligible off-gas-grid properties replacing oil or LPG heating systems, helping households and small businesses most exposed to volatile fossil fuel prices to switch to low-carbon heating.