Campaigners say the cost of heating oil continues to surge and has reached levels not seen since the early days of the Ukraine invasion
The Middle East conflict has led to oil costs soaring(Image: Getty Images/iStockphoto)
UK households that use heating oil are already “starting to suffer” with higher costs as a result of the Middle East conflict.
Home heating oil is used by around 1.5 million households – but this type of fuel is not covered by the Ofgem price cap, which limits how much you can be charged for energy.
The End Fuel Poverty Coalition reports the cost of heating oil continues to surge and has reached levels not seen since the early days of the Ukraine invasion.
It claims some customers suggest that 1,000 litres of heating oil now costs almost £985, compared to £670 in January.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “These homes are also those that are among the deepest fuel poverty as the cost of home improvements which could help reduce energy use can be prohibitive.
“This means that when overseas conflicts send oil prices soaring, the cost of heating for families in rural and off-grid homes can jump almost overnight.
He added: “While other households are protected by the energy price cap for now, homes heated by oil are starting to suffer now and may need urgent support.”
Martin Lewis has also issued a separate warning for those who rely on heating oil. In a social media post, he said: “The home heating oil situation is terrible for many unlucky enough to be about to refill.
“The solutions of ‘comparison’ and ‘collective buying’ are weak at this time. The outrage is this is an unregulated, unprotected, market (we’ve long called for that to change).
“We are subserving many, especially those who live in rural communities.”
Oil prices have risen after shipping through the Strait of Hormuz ground to a halt after several vessels were attacked in recent days. Brent Crude Oil today climbed to around $87 a barrel.
Energy suppliers have also started pulling fixed-price tariff deals, with data from Uswitch showing the number of fixed deals available has more than halved.
Energy prices are still set to fall from April, as the new Ofgem price cap has already been announced. The price cap will drop from £1,758 to £1,641 a year for a typical dual fuel household from April 1.
But experts have predicted that they are likely to rise by around 10% from July, particularly due to higher gas prices.
Analysts Cornwall Insight said forecasts for Ofgem’s price cap for July to September had surged to £1,801 a year – an increase of £160 the April price cap.
However, it said the final price cap figure would be based on average wholesale prices over a three-month period, meaning that it would depend on how long the Middle East conflict goes on for.