UK households using heating oil are feeling the impact of increased costs due to the ongoing tensions in the Middle East. Approximately 1.5 million households rely on heating oil, which is not subject to the price cap set by Ofgem for energy costs.
The End Fuel Poverty Coalition has noted a significant rise in heating oil prices, reaching levels reminiscent of the early stages of the conflict in Ukraine. Some customers have reported a substantial increase in the cost of 1,000 litres of heating oil, now nearing £985 compared to £670 in January.
Simon Francis, coordinator of the End Fuel Poverty Coalition, highlighted the vulnerability of homes using heating oil, stating that these households are facing deep fuel poverty. The surge in oil prices following international conflicts directly impacts these rural and off-grid homes, leading to sudden spikes in heating costs.
Martin Lewis also raised concerns for heating oil users, emphasizing the lack of regulation and protection in the market. He highlighted the challenges faced by many, especially those in rural communities, urging for changes in the industry.
Recent disruptions in oil shipping through the Strait of Hormuz, coupled with attacks on vessels, have contributed to the rise in oil prices. Energy suppliers have started withdrawing fixed-price tariff deals, reducing options for consumers.
While energy prices are anticipated to decrease in April with the new Ofgem price cap, experts predict a subsequent increase of around 10% from July, driven by higher gas prices. Analysts at Cornwall Insight project a significant rise in the price cap for the following quarter, depending on the duration of the Middle East conflict and wholesale price trends.