UK households relying on heating oil are feeling the pinch of increased costs due to the ongoing Middle East conflict. Approximately 1.5 million households use home heating oil, which is not protected by the Ofgem price cap that regulates energy costs.
The End Fuel Poverty Coalition has reported a significant surge in heating oil prices, reaching levels comparable to the early stages of the Ukraine invasion. Some consumers have noted a sharp increase in costs, with 1,000 liters of heating oil now priced at nearly £985, compared to £670 at the start of the year.
Simon Francis, coordinator of the End Fuel Poverty Coalition, highlighted that households using heating oil, particularly in rural and off-grid areas, are facing escalating expenses without the protection of the energy price cap. He emphasized the urgent need for support for these vulnerable households.
Renowned financial expert Martin Lewis issued a caution to those reliant on heating oil, expressing concerns over the unregulated nature of the market and the challenges faced by consumers, especially in rural communities.
Recent disruptions in oil shipping through the Strait of Hormuz, following vessel attacks, have led to a rise in oil prices, with Brent Crude Oil hitting around $87 per barrel. Energy suppliers have also started withdrawing fixed-price tariff deals, reducing options for consumers.
While energy prices are expected to decrease from April due to the updated Ofgem price cap, experts anticipate a subsequent rise of approximately 10% from July, driven by increased gas prices. Analysts have projected a surge in the price cap to £1,801 annually for the July to September period, depending on the duration of the Middle East conflict.
Consumers are advised to stay informed about energy market developments and potential price fluctuations.