UK heating oil households have fewer protections than gas customers
A typical 500-litre order cost about £520 in March, up from about £320 in February, the CMA found in its July report.
About 1.5 million UK households rely on heating oil but do not have the same consumer protections as electricity and gas customers, the Competition and Markets Authority (CMA) said in a report published in July.
The final report, published on 15 July 2026, followed a market study launched on 20 March after conflict in the Middle East caused significant disruption to the heating oil market.
Average retail prices rose from 64p a litre in February to 104p in March. They peaked at 123p in April, 92% above the February level. Prices fell 15% in May to 104p, but remained higher than before the conflict.
The price rise largely reflected higher wholesale costs. The CMA found the market generally competitive and said suppliers had not profited materially from the crisis, but that consumers are not as well protected as those connected to the grid.
It pointed to gaps compared with gas and electricity, such as consistent standards of support for vulnerable customers and access to alternative dispute resolution if a customer cannot resolve an issue with a supplier. The lack of protections becomes “especially problematic” during periods of volatility, it said, when households may face substantially higher prices and fewer options for urgent deliveries.
What the CMA recommends
The CMA recommended that the UK government and the Northern Ireland Executive introduce a new, proportionate regulatory regime for heating oil suppliers. Suppliers would have to register and meet minimum standards covering how prices are quoted and cancellations are managed, and households would get access to independent dispute resolution.
Suppliers would also have to signpost payment plans and minimum purchase volumes clearly, and a register of vulnerable households would be created.
Separately, the CMA found that around 1,700 customers were affected by possible breaches of contract after orders were cancelled. Many had to re-order at significantly higher prices or go without fuel, and some may have paid between £150 and £350 more. A number of suppliers had agreed to compensate customers, but the CMA said it was preparing court-based enforcement action against firms that do not.
What the government said in March
In a news release on 16 March 2026, before the CMA published its report, the government said it intended to introduce new consumer protections for heating oil customers, noting that heating oil is not regulated by Ofgem. It said it was exploring a new ombudsman or the appointment of a regulator, such as Ofgem.
The same announcement set aside more than £50 million for low-income households that heat with oil, with £27 million for England distributed by local authorities.
The CMA said in July that it would work with governments, regulators and industry to consider and take forward its recommendations.
