UK households using heating oil are feeling the pinch of increased costs due to the ongoing Middle East conflict. Approximately 1.5 million households rely on home heating oil, which is not protected by the Ofgem price cap that regulates energy costs.
According to the End Fuel Poverty Coalition, heating oil prices have spiked to levels not witnessed since the early stages of the Ukraine invasion. Some consumers have reported a significant surge in the cost of 1,000 liters of heating oil, reaching almost £985 compared to £670 in January.
Simon Francis, coordinator of the End Fuel Poverty Coalition, highlighted the vulnerability of households relying on heating oil, stating that these homes face deep fuel poverty as the expenses for energy-efficient home improvements are often unaffordable. He emphasized that when global conflicts escalate oil prices, families in rural and off-grid homes experience sudden spikes in heating expenses.
Martin Lewis also raised concerns for those dependent on heating oil, emphasizing the challenges faced by consumers during the current market conditions. Oil prices have risen due to disruptions in shipping through the Strait of Hormuz following recent attacks on vessels, with Brent Crude Oil reaching around $87 per barrel.
Energy suppliers are withdrawing fixed-price tariff deals, reducing options for consumers. Although energy prices are expected to decrease in April with the new Ofgem price cap dropping to £1,641 for a typical dual fuel household, experts predict a subsequent increase of around 10% from July, mainly attributed to higher gas prices.
Cornwall Insight analysts anticipate a surge in the Ofgem price cap to £1,801 per year from July to September, indicating a significant rise from the April cap. The final price cap will depend on average wholesale prices over a three-month period, with fluctuations contingent on the duration of the ongoing Middle East conflict.
