O’Dowd calls for direct support for customers hit by home heating oil price rise

Stormont’s Finance Minister has called for direct support from the UK Government to people in Northern Ireland struggling with the rise in the cost of home heating oil following the start of war in the Middle East.

John O’Dowd said the powersharing Executive does not have the financial “firepower” to fund any relief scheme.

The minister said he believed the cost of any such initiative could run into hundreds of millions of pounds.

Chancellor Rachel Reeves has already acknowledged the “unique issues” around heating oil, which is used by around two thirds of domestic properties in Northern Ireland.

Global oil prices have risen sharply in response to the crisis in the Middle East, with Iran launching strikes in response to attacks by the US and Israel.

The Consumer Council said the average price of 500 litres of home heating oil in Northern Ireland saw an 81% increase in a week after the start of the conflict.

The heating oil market in Northern Ireland is unregulated, unlike gas and electricity.

Treasury minister Lord Livermore is meeting with MPs, including some from Northern Ireland, on Wednesday to discuss the issues.

Mr O’Dowd said he had written to the Chief Secretary to the Treasury James Murray to ask for direct engagement with the Stormont Executive.

He said: “The Executive is best placed to represent the people here and put across the case for supported interventions in that matter.

“The Minister for the Economy (Caoimhe Archibald) has also been in regular contact with ministers both in London and Dublin in relation to the ongoing energy crisis and the call for direct intervention from the British Government in relation to support for businesses and homeowners here in relation to the ongoing crisis in relation to the significantly rising cost of home heating oil.

“We will continue that engagement, it is vitally important that that support comes from Westminster.

“The Executive simply does not have the ability to intervene at the scale of challenges that are being faced at this stage.”

Mr O’Dowd said he believed a relief scheme was necessary and that it is the “responsibility of the British Government to fund that scheme”.

Responding to remarks by US President Donald Trump that the war in Iran could soon end, the minister said: “I hope for humanitarian reasons that the war in Iran is coming to an end and the people who are suffering there, that suffering is brought to an end immediately.

“I think the consequences of what has happened over this last week to 10 days will continue to reverberate across economies for many months to come.

“People right here are facing the consequences, particularly of rising home heating oil costs and that needs to be dealt with.”

Mr O’Dowd said similar schemes had been rolled out in the past.

He said: “In terms of the scale of costs involved, the Executive simply doesn’t have that firepower, we are looking towards the British Government.

“I think there needs to be a unified voice from this place (Stormont) in relation towards looking towards the British Government to fund that scheme.”

Asked about the potential cost of such a scheme, Mr O’Dowd said: “It could be into the hundreds of millions of pounds, the Executive doesn’t have that sort of cash available to it.”

Ms Reeves indicated in the Commons on Wednesday that she will not be providing any relief to heating oil customers with public funds.