Households using heating oil to get stronger consumer protections
The government will develop regulation for the market, but has not proposed a price cap or start date.
The government has accepted plans in principle to regulate the UK heating oil market for the first time. Ministers say households will receive clearer rights, better support and easier access to redress, while warning that the reforms will take time.
The government’s response to the Competition and Markets Authority’s heating oil study, published on Tuesday, backs a proportionate regulatory regime for suppliers. The plan will be developed with Ofgem, the devolved governments, industry and consumer representatives, and will require legislation before the longer-term framework can take effect.
About 1.5 million UK households rely on heating oil, particularly in rural and off-grid communities. Unlike gas and electricity customers, they do not currently have equivalent protections covering cancelled orders, dispute resolution, vulnerable-customer support or the transparency of price quotations.
The CMA found that the sharp rise in prices earlier this year was largely driven by higher wholesale costs rather than excessive profits or a lack of competition. Its figures show the average price rose from about 55p a litre in February 2026 to 104p in March, while the typical 500-litre order increased from roughly £320 to £520 over the same period.
The proposed regime could include supplier authorisation, minimum standards, a mandatory code of conduct, independent dispute resolution and a priority service programme for vulnerable households. The government is also considering smaller minimum orders, payment plans and clearer information about available support.
Ministers have explicitly ruled out simply copying the gas and electricity price cap at this stage. The response says the focus will instead be on consumer protection, monitoring supply and pricing, and targeted help for households most exposed to volatility. The government says it has already provided more than £50 million in support and offers grants of up to £9,000 for some households switching to clean heat.
In the meantime, officials will work with suppliers and trade bodies to strengthen existing codes of practice and improve access to dispute resolution. The End Fuel Poverty Coalition welcomed the direction of travel as a step towards fairer treatment for rural households, but the absence of a timetable means the immediate market remains largely unchanged.
One story, several perspectives
What is established
- Around 1.5 million UK households use heating oil.
- The CMA found weaker consumer protections than those available to gas and electricity customers.
- The government has agreed in principle to develop a proportionate regulatory regime.
- The government is not proposing a gas-style price cap at this stage.
Left
Arguments The market has left rural and vulnerable households exposed, so suppliers should face enforceable standards, accessible redress and stronger public oversight.
Values Economic security, protection from exploitation and equal treatment for households regardless of whether they are connected to the gas grid.
Consequences Without firm regulation and financial support, price shocks could deepen fuel poverty and leave households unable to secure essential heating.
Centre
Arguments A proportionate framework can close genuine protection gaps without imposing a rigid price system that reduces competition or drives smaller suppliers out of the market.
Values Evidence-led policy, consumer protection, competition and workable implementation.
Consequences A phased system with codes, redress and monitoring may improve outcomes, but its success will depend on clear rules, enforcement and a credible timetable.
Right
Arguments Wholesale volatility cannot be solved by regulation alone, and excessive compliance costs could reduce supplier choice in the rural areas that already have fewer options.
Values Competition, lower regulatory burdens, private enterprise and targeted rather than universal intervention.
Consequences A heavy regime could raise delivery costs or push suppliers out, while targeted support and more domestic energy supply may offer better long-term protection.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Priya Shah — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The article is based on the government’s response published on 13 October and the CMA’s underlying market study. Figures and policy details match the cited official sources.
- confirmed The government accepted in principle a proportionate regulatory regime for heating oil suppliers. — The government response records agreement in principle with the CMA’s first recommendation. source
- confirmed About 1.5 million UK households rely on heating oil. — The CMA gives this estimate in its market-study findings. source
- confirmed The CMA said price rises were largely driven by wholesale costs rather than excessive profits or weak competition. — This is stated in the CMA’s findings and repeated in the government response. source
- confirmed Average prices rose from about 55p a litre in February 2026 to 104p in March. — The figures appear in the government response and CMA data. source
- confirmed The government is not proposing a gas-style price cap for heating oil at this stage. — The response explicitly says it is not proposing simply to replicate the gas and electricity price cap. source
- confirmed The End Fuel Poverty Coalition welcomed the direction of travel. — The coalition described regulation as a step in the right direction for rural households. source
Editor's note
The government has agreed in principle to regulation, but the design, legislation and timetable remain unsettled. The CMA attributed the earlier price rise mainly to wholesale costs, not proven supplier profiteering.Sources
- Government response to the CMA heating oil market study — Department for Energy Security and Net Zero
- UK’s heating oil households need stronger protections, says CMA — Competition and Markets Authority
- Heating oil homes to get new protections yet long term help faces the axe — End Fuel Poverty Coalition
More on this in other media
- The Guardian — „heating oil”
- BBC News — „heating oil”
- Sky News — „heating oil”