CMA Calls for Stronger Consumer Protections for UK Heating Oil Households

When we talk about home energy, we usually mean gas and electricity. But around 1.5 million households across the UK heat their homes and water with heating oil instead, and the Competition and Markets Authority says those households are missing some of the protections that grid-connected customers already take for granted. That matters most in rural and off-grid communities. Heating oil is usually bought in large one-off orders rather than spread across monthly bills, so a single delivery can cost £500 or more. If prices jump or an order falls through, the pressure lands all at once.

The CMA began looking closely at the sector after conflict in the Middle East disrupted supply and pushed prices sharply higher. According to the regulator, average retail heating oil prices rose from 64p per litre in February 2026 to 104p per litre in March 2026, a rise of 64 per cent. Prices then peaked at 123p per litre in April 2026, which was 92 per cent above February levels. If you want the household version of that story, the CMA gives a clear example. A typical 500-litre order cost about £320 in February 2026, then around £520 in March 2026. About £170 of that £200 jump came from higher wholesale costs. The regulator says 83 per cent of the March increase was down to wholesale prices, while supplier operating costs explained a further 6 per cent, or roughly 2p per litre.

That finding matters because it changes the shape of the argument. The CMA says the heating oil market is generally competitive and that suppliers did not profit materially from the crisis. In other words, this was not mainly a case of widespread profiteering. Most households still had a choice of supplier and enough information to compare prices, and the regulator estimates that around 60 per cent of UK heating oil orders are now placed online. But competition is not spread evenly across the country. Northern Ireland, where more than 60 per cent of households rely on heating oil, tends to have lower prices because homes are closer together and deliveries are cheaper to make. Remote areas, including parts of Scotland, often face the opposite problem: fewer suppliers, higher delivery costs and steeper price rises when supply is tight. In March 2026, average prices reached 113p per litre in Scotland, 106p in Wales, 103p in England and 97p in Northern Ireland.

This is where the story moves from prices to rights. Unlike households on mains gas and electricity, heating oil customers do not have the same consistent protections if something goes wrong. The CMA says there are gaps around support for vulnerable customers, clearer rules on cancellations and access to independent dispute resolution, which is simply an outside complaints route when a supplier and customer cannot settle a dispute on their own. What this means for you is simple: households that are already harder to serve can also find it harder to challenge unfair treatment. During cold weather, supply disruption or sudden global shocks, that gap becomes more serious. People may not know what they will end up paying, may struggle to get an urgent delivery and may have very little support if an order is cancelled. As CMA chief executive Sarah Cardell has said, heating and hot water are basic needs. That is why the watchdog argues that competition on its own is not enough.

To tackle those weaknesses, the CMA is urging the UK government and devolved governments to introduce a new, proportionate regulatory system for heating oil suppliers. Under the regulator's plan, suppliers would have to register and meet minimum standards covering price quotes, cancellation handling and access to independent dispute resolution. The recommendations also focus on everyday pressure points that many households will recognise straight away. Suppliers should clearly signpost payment plans and minimum order sizes, so customers know their options before they commit. The CMA also wants governments to review the rules around minimum order volumes, which could make it easier for people to buy smaller amounts of heating oil when money is tight rather than waiting until they can afford a bigger delivery.

There is also a strong case for more targeted support. The CMA wants a register for vulnerable households so that help is easier to organise during disruption. It is also suggesting a Scottish price checker based on the Consumer Council for Northern Ireland's heating oil tool, which helps people compare local prices more confidently. The regulator goes one step further too. It says governments should consider whether communities that are especially exposed to high and volatile heating oil prices ought to be prioritised when the shift to alternative energy sources is planned. That matters because better complaint systems can reduce harm, but they do not remove the bigger problem of whole areas being tied to expensive and unstable fuel.

Alongside the market study, the CMA has also been investigating cancelled orders. It says around 1,700 households may have been affected by possible breaches of contract when some suppliers cancelled customer orders as the crisis unfolded. Many of those customers got refunds, but that did not put them back where they started. Getting a refund is not the same as being made whole when the market has moved against you. Some households had to reorder at much higher prices, while others went without fuel. The CMA says some people may have paid between £150 and £350 more as a result. After intervention from the watchdog, several suppliers have agreed to compensate affected customers by covering the extra amount paid for replacement oil or by honouring the original order at the agreed price. Not every firm has agreed, and the CMA says it is preparing court-based enforcement action against those that still refuse.

The next stage is less dramatic, but it matters just as much. The CMA says it will now work with governments, regulators and the industry to take these recommendations forward, while continuing discussions with suppliers about compensation. It has also separately written to suppliers of liquefied petroleum gas, or LPG, to remind them of their duties under consumer protection law, although it has not found that those firms broke the law. For readers trying to make sense of this, the lesson is wider than heating oil alone. This is a story about what happens when an essential service sits outside the stronger protections many of us assume are already in place. If ministers act on the CMA's recommendations, households that rely on heating oil could get clearer prices, fairer cancellation rules and better help when things go wrong. For off-grid Britain, that would not be a small technical fix. It would be a basic step towards equal treatment.