Every four weeks in winter William Ellis orders heating oil for his four-bedroom home in Retford, Nottinghamshire.
But when the 73-year-old rang his supplier for a quote on March 6, he was horrified to find that prices had more than doubled in three weeks.
The 500 litres of heating oil that had cost him £284 on February 19 would now cost him £735 – £451 more and a 159 per cent jump.
The cost of heating oil that 1.7 million households in Britain use as their main way to warm their homes has rocketed after the outbreak of the war in the Middle East.
There are fears there will soon be shortages as a large proportion of incoming supply is being held up in the Strait of Hormuz, a maritime passage where cargo ships are being targeted.
About 40 per cent of Europe’s kerosene-based fuel – which provides our heating oil – comes from the Middle East.
Feeling the chill: The cost of heating oil that 1.7 million households in Britain use as their main way to warm their homes has rocketed after the outbreak of the war in the Middle East
Heating oil firms are now being accused of cashing in on the global chaos — with some UK customers seeing their bills more than double in just a few days.
Chancellor Rachel Reeves acknowledged on Monday the ‘real and urgent problem’ for low-income households reliant on heating oil.
The Government announced a £53 million package of ‘targeted’ support to help, but critics warned that it was equal to just £35 for each household reliant on heating oil. That figure is just a fraction of the additional costs that households are facing.
The Government also said it intends to regulate the heating oil sector and introduce new protections for consumers. But the changes are unlikely to be implemented quickly enough for many homes.
Heating oil is a liquid fuel – usually kerosene – that is burned in a boiler to provide central heating and hot water.
It is mainly used by households in rural areas that are not connected to the mains gas network. Oil is delivered by tanker and stored in a tank at the home, with households typically ordering it in bulk a few times a year.
William Ellis and his wife Jane, 75, have the heating on as little as possible after their shock price quote. William says: ‘It is a massive price increase.
We have not ordered any yet – 500 litres only lasts about four weeks when it’s cold. We also have a wood burner, which has been a saviour, but the Government is talking about banning those.
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Dipping a beanpole into the 1,800-litre green oil tank in my garden, I get a nasty surprise. The oil line on the stick shows just two inches of oil.
My wife protests as I race upstairs to shut off the boiler.
But after explaining we have family over for the Easter weekend – so our four-bedroom rural Hertfordshire home will be packed with 14 people – she accepts we must hold back on further use so our guests don’t freeze.
Where I might have paid about £1,000 to have the tank filled with 1,500 litres at the end of February, this is now close to £2,500.
‘I saw the Government announcement about means-tested help but I don’t think we would qualify.
‘Someone is making a lot of money from this – although I don’t think it’s the retailer, which is a small family firm. We looked at changing to a heat pump but the house is quite draughty and would need insulating, which would cost a lot.’
Kaj Adams, director of an electrical connections firm in Suffolk, placed an order with one company just as the war began, agreeing a price of £400 for 500 litres of oil.
He says: ‘This week they told me they couldn’t deliver at the price agreed and I could either pay £720 for the order, cancel it, or wait until the oil price dropped to February prices for it to be delivered.’
After intervention from MPs, the company agreed to honour the original price.
Jack Weaver, from Norwich, is chief operating officer at the Norfolk Chamber of Commerce and buys heating oil for his family home.
He says: ‘I bought 500 litres four weeks ago for 57p per litre (£285). And two days after Trump struck Iran, I got a marketing email saying the best rate for that ‘buying weekend’ was £1.35 per litre (£675 for 500 litres). The same amount today would cost over £700.
‘I do think the situation is being exploited by suppliers. The price they paid wholesale at the time is not being reflected in their retail prices.’
Price hikes: The cost of heating oil that 1.7 million households in Britain use as their main way to warm their homes has rocketed after the outbreak of the war in the Middle East
Trade body the Fuel Distribution Association said prices were being driven up by a sharp increase in the price of jet fuel. This is because jet fuel and heating oil are kerosene-based.
The Competition & Markets Authority (CMA), an independent government department, launched an investigation into the heating oil market last week.
Ministers have vowed to take action where the CMA finds evidence of price manipulation, profiteering or unfair practices.
Heating oil and fuels such as liquefied petroleum gas are not covered by Ofgem’s energy price cap which protects domestic gas and electricity customers from rising rates.
Sarah Dyke MP, Liberal Democrat rural affairs spokesperson, says: ‘We are hearing from hundreds of constituents who are absolutely terrified about how they will pay for their skyrocketing heating oil bills.
‘It is completely unfair that those who rely on heating oil in rural areas have been left high and dry without any protection.’
Tim Buckman, chief executive of heating oil marketplace BoilerJuice, says: ‘We’d encourage customers to keep a close eye on their tank levels and plan orders well in advance.’
