The government has responded to the Competition and Markets Authority’s (CMA) recent study into the retail supply of heating oil for domestic use in the UK.
Following the research, Labour accepts that there is a need for stronger consumer protections in the domestic heating oil market but has ruled out a price cap at this stage.
Around 1.5 million homes rely on heating oil, many of which are in rural and off-grid communities with limited alternatives.
The market has always been competitive but recent volatility has exposed gaps in consumer protection. This includes unclear pricing, cancellation terms, inconsistent support for vulnerable customers and limited access to independent dispute resolution.
Alistair Hill, Head of Energy Transition at Consumer Scotland, welcomed the support and claimed it will help customers.
He said: “All these measures are welcome, but improving energy efficiency and supporting more heating oil and LPG households to move to low-carbon heating systems can help deliver warmer homes, lower energy bills and greater energy security in the years ahead.”
Heating oil prices rose from around 55p per litre in February 2026 to 104p per litre in March, following disruption associated with the conflict in the Middle East.
The government have committed to stronger regulation, immediate consumer protections, a review of minimum order volumes, clearer payment information, targeted regional support and price transparency.
In March 2026, the government announced more than £50 million in targeted financial support for low-income households using heating oil, delivered through arrangements across the UK.
The government says it will now work with Ofgem, the CMA, consumer organisations and devolved administrations to develop longer-term reforms.
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