Fuel Oil: Prices
The question
To ask the Secretary of State for Energy Security and Net Zero, if he will make an assessment of the potential implications for his policies of reports that retail companies have increased the price of domestic heating oil separate to and above increases in wholesale prices; and whether he will refer the market to the Competition and Markets Authority.
Answered by Martin McCluskey
The Government is aware that off-grid households have seen a sharp increase in heating oil prices due to volatility in international markets. Suppliers often have limited storage, buying daily on the spot market. These changes are then reflected immediately in the price consumers pay.
Following discussions with the Competition and Markets Authority, we welcome the CMA's launch of a comprehensive examination into the heating oil industry.
We will work closely with the CMA to understand their findings and develop options to increase consumer protections, including how regulation can increase stability.
While this work is ongoing, the Chancellor has announced £53m for low-income households that heat their homes with oil. In England, funding will be distributed by local authorities via the Crisis and Resilience Fund (CRF), which comes into effect from 1 April. The additional funding has targeted areas with higher proportions of oil heating.
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