Reeves to look at how to help households with heating oil bills

Chancellor Rachel Reeves has promised to explore options to address the "unique challenges" faced by households reliant on heating oil amid the US-Israeli war with Iran.

The global oil price reached nearly $120 a barrel on Monday, a four-year high, over fears of a lengthy disruption to supplies caused by the war.

Those who use heating oil often store it in a tank outside their property and are among the first to feel the impact of rising prices.

Reeves promised meetings between the Treasury and rural and Northern Ireland MPs on Wednesday to look at "action we can take" to support those using heating oil.

There is no cap to limit the cost of heating oil in the way households benefit from regulator Ofgem's price cap on gas and electricity bills.

Energy Secretary Ed Miliband on Monday warned the chief executive of the UK and Ireland Fuel Distributors Association the increase in heating oil prices had been "significant" and "caused concern among households and businesses".

Only 3% of households in England and Wales said oil was their only source of central heating, according to a 2021 census, and 5% of households in Scotland.

But almost two-thirds of homes in Northern Ireland use oil for heating, by far the highest proportion among UK nations.

According to the Consumer Council, about 500,000 homes in NI use heating oil and about 284,000 natural gas.

Fran Barrett, who lives in a Cheshire village not on the gas network and in which everyone is dependent on oil, said she first saw prices double, and is now unable to secure a delivery.

Barrett, a teacher, told BBC Your Voice her oil tank is about a third full and she is saving what's left solely for hot water, having turned the heating off completely.

"The first quote I had was £314 for 500 litres… then within two or three days of the conflict starting, it went up to £653," she said.

As of Monday, Barrett was being told a supplier could not be found in her area.

Addressing MPs, Reeves said: "I recognise that households who use heating oil face unique challenges, and so I have asked the Financial Secretary to the Treasury to lead discussions with officials and with rural and Northern Irish MPs to explore further action that we can take."

It came after watchdog the Competition and Markets Authority (CMA) warned the war was "putting pressure on heating oil prices".

Acting executive director for consumer protection Emma Cochraine warned suppliers against profiteering by hiking the price of heating oil for those who have already placed orders.

"We won't hesitate to take action if we suspect that consumer or competition law is being broken," Cochraine warned.

Reeves said on Monday she has asked the CMA to "be vigilant across prices including essentials like road fuel and heating oil".