The 1.7m homes whose heating bills have DOUBLED since the Iran war broke out
Every four weeks in winter William Ellis orders heating oil for his four-bedroom house in Retford, Nottinghamshire.
But when the 73-year-old man called his supplier for a quote on March 6, he was horrified to find prices had more than doubled in three weeks.
500 liters of heating oil, which cost him £284 on February 19, will now cost £735 (£451 more) and a 159 per cent increase.
The cost of heating oil, which 1.7 million households in Britain use as the main method of heating their homes, has soared since the outbreak of war in the Middle East.
There are fears of imminent shortages as most incoming supplies have been stopped in the Strait of Hormuz, a sea passage where cargo ships have been targeted.
Approximately 40 percent of Europe’s kerosene-based fuel, which provides our heating oil, comes from the Middle East.
Feeling the chill: The cost of heating oil, which 1.7 million households in Britain use as the main way of heating their homes, has skyrocketed after the outbreak of war in the Middle East
Heating oil companies are now accused of making money from global chaos; Some customers in the UK are seeing their bills more than double in just a few days.
Chancellor Rachel Reeves acknowledged on Monday there was a ‘real and urgent problem’ of low-income households reliant on heating oil.
The government has announced a ‘targeted’ support package of £53m for aid, but critics have warned this equates to just £35 for every household dependent on heating oil. This figure is only a small fraction of the additional costs faced by households.
The government has also said it plans to regulate the heating oil industry and introduce new protections for consumers. But the changes are unlikely to be implemented quickly enough in many homes.
Heating oil is a liquid fuel, usually kerosene, that is burned in a boiler to provide central heating and hot water.
It is mostly used by households in rural areas that are not connected to the mains gas network. The oil is transported by tanker and stored in a tank at home; households often order in bulk several times a year.
William Ellis and his wife, Jane, 75, are turning the heating on as little as possible after their shock price offer. William says: ‘This is a huge price increase.
We haven’t ordered yet; 500 liters will only last about four weeks when it’s cold. We also have wood stoves which are our savior but the Government is talking about banning them.
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We’re saving our oil for Easter
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I get a nasty surprise when I sink a beanstalk into the 1,800-litre green oil tank in my garden. The oil line on the dipstick shows only two inches of oil.
When I go upstairs to turn off the boiler, my wife objects.
But after we explained that our family were here for the Easter weekend – meaning our four-bedroom rural house in Hertfordshire would be occupied by 14 people – he agreed that we should hold off on using it any further to avoid freezing our guests.
At the end of February I might have paid around £1,000 to fill the tank with 1,500 litres, this is now closer to £2,500.
‘I’ve seen the government’s announcement about means-tested aid but I don’t think we’ll qualify.
‘Someone makes a lot of money from this; but I don’t think this is a small, family-owned retailer. ‘We considered switching to a heat pump but the house is quite drafty and needs insulation, which costs a lot.’
Kaj Adams, manager of an electrical connections firm in Suffolk, placed an order with a company at the outbreak of war, agreeing a price of £400 for 500 liters of oil.
He says: ‘This week they told me they could not deliver at the agreed price and said I could pay £720 for the order, cancel the order or wait for the oil price to drop to February prices for delivery.’
After MPs’ intervention, the company agreed to charge the original price.
Jack Weaver of Norwich is chief operating officer for the Norfolk Chamber of Commerce and purchases heating oil for his family’s home.
He says: ‘Four weeks ago I bought 500 liters for 57p (£285) a litre. And two days after Trump hit Iran, I received a marketing email saying the best rate for this ‘weekend buy’ was £1.35 per liter (£675 for 500 litres). Today the same amount would be over £700.
‘I think the situation is being exploited by suppliers. ‘The price they paid wholesale at that time is not reflected in the retail prices.’
Price rises: The cost of heating oil, which 1.7 million households in Britain use as the main way of heating their homes, has risen sharply since the outbreak of war in the Middle East
Trade body Fuel Distribution Association said the prices were driven by a sharp rise in jet fuel prices. This is because jet fuel and heating oil are kerosene-based.
The Competition and Markets Authority (CMA), an independent government department, launched an investigation into the heating oil market last week.
Ministers have vowed to take action if the CMA finds evidence of price manipulation, profiteering or unfair practices.
Fuels such as heating oils and liquefied petroleum gas are not covered by Ofgem’s energy price cap, which protects domestic gas and electricity customers from rising rates.
Sarah Dyke MP, the Liberal Democrats’ rural affairs spokesperson, said: ‘We are hearing from hundreds of voters who are absolutely terrified about how they will pay their skyrocketing heating oil bills.
‘It’s completely unfair that those who rely on heating oil in rural areas are left high and dry with no protection.’
Tim Buckman, managing director of heating oil market BoilerJuice, says: ‘We encourage our customers to keep a close eye on tank levels and plan their orders well in advance.’
