Households on heating oil already grappling with soaring prices
The problem is particularly acute in Northern Ireland, where 62.5% of homes rely on it, compared to the UK average of just over 5%.
Households that rely on heating oil are grappling with immediate rising costs as the Middle East conflict causes prices to soar.
Home heating oil is used by around 1.5 million households in the UK, but sudden volatility in global oil trade has caused prices to spike by as much as £100 in the past week alone.
The problem is particularly acute in Northern Ireland, where 62.5% of homes rely on it, compared to the UK average of just over 5%.
Heating oil customers fall outside of Ofgem’s energy price cap protections, which currently fixes prices until the end of June.
The End Fuel Poverty Coalition said it knew of one heating oil customer who had just been quoted £985 for 1,000 litres, which cost £670 in January.
Wholesale markets have climbed amid heightened regional tensions in the Middle East.
Following US and Israeli missile strikes on Iran, retaliatory attacks from Iran damaged oil and gas infrastructure across key Gulf states.
Iran has also warned ships not to use the Strait of Hormuz, a vital shipping route for about 20% of global oil and gas, adding further pressure to global energy markets.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “Households that rely on heating oil are often some of the most exposed to global fossil fuel price shocks because they sit outside the energy price cap.
“These homes are also those that are among the deepest fuel poverty as the cost of home improvements which could help reduce the cost of energy can be prohibitive.
“This means that when overseas conflicts send oil prices soaring, the cost of heating for families in rural and off-grid homes can jump almost overnight.
“While other households are protected by the energy price cap for now, homes heated by oil are starting to suffer now and may need urgent support.”
Mr Francis added: “This is another harsh reminder that relying on volatile fossil fuel markets leaves households vulnerable.
“The long-term answer has to be looking at alternative heating systems and creating warmer homes by supporting people who need to improve energy efficiency.”
Speaking in the House of Commons on Thursday, Energy Secretary Ed Miliband said those using heating oil were “more exposed” to the market than those protected by the price cap.
Mr Miliband told MPs: We will look at that issue. And indeed, I go back to the wider point I made, that both the Chancellor and the PM have shown determination to act on the cost-of-living crisis.”
