UKIFDA Statement on Current Heating Oil Prices

UKIFDA continues to work closely with government, local authorities and industry stakeholders to support households that rely on heating oil and to provide clear, accurate market information.

Earlier this year, conflict in the Middle East led to sharp increases in wholesale jet fuel prices, resulting in higher heating oil prices across the UK. This is because jet fuel and heating oil are both kerosene-based products, and the wholesale jet fuel market is a key driver of heating oil prices in the UK and Ireland. As UKIFDA explained at the time, heating oil distributors buy fuel at prevailing wholesale market prices and are therefore directly affected by movements in international energy markets.

Since then, the Competition and Markets Authority (CMA) has completed its review of the domestic off-grid energy market. The CMA found no evidence of widespread competition concerns in the heating oil sector and concluded that price movements were driven primarily by wholesale market conditions.

UKIFDA welcomed the CMA’s outcome, which reflects the industry’s long-standing position. The heating oil market remains highly competitive, with hundreds of distributors, many of them long-established family businesses, serving communities across the UK.

The Association also recognises that higher energy costs continue to place pressure on many households. UKIFDA and its members are continuing to work constructively with government and policymakers to help ensure consumers can access available support and receive practical advice ahead of winter.

In March, the UK Government launched a £50 million emergency fund which has been supplanted by devolved governments. To access this, consumers are encouraged to contact:

England – Crisis and Resilience Fund;
Scotland – Advice Direct Scotland;
Wales – Welsh Discretionary Assistance Fund;
Northern Ireland – Home Heating Oil Support Scheme.

Households should check the eligibility criteria for any scheme before applying.

At the same time, UKIFDA encourages consumers to prepare for winter by monitoring tank levels regularly, maintaining adequate heating oil levels, and ordering in good time. UKIFDA recommends keeping at least 500 litres of heating oil in tanks wherever possible to reduce the risk of running low during periods of increased demand, severe weather, or unexpected delivery delays.

Ken Mackness, Chief Executive of UKIFDA, said:

“The events we saw earlier this year demonstrated how quickly international developments can affect wholesale energy markets. As UKIFDA explained at the time, heating oil prices were driven by movements in the wholesale market, and the CMA’s findings have helped provide further clarity on how the sector operates and how prices are influenced.”

“Our members remain committed to supporting customers throughout the winter. Alongside working with government, local authorities and other stakeholders, we are encouraging households to plan ahead, monitor tank levels regularly and maintain adequate heating oil reserves. Customers should also speak to their local distributor, check distributor websites and use online platforms to explore the pricing, payment and delivery options available.”