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Rural West communities struggle as heating oil prices rise
Overview
About 1.5 million people in the UK not connected to the mains gas network rely on heating oil, an unregulated market sensitive to global disruptions like conflicts in the Middle East and Ukraine. Prices surged following geopolitical events, leaving rural households, businesses, and care providers facing significantly higher costs as winter approaches. Organisations are calling for government intervention, such as removing VAT on heating oil, to support vulnerable rural communities.
Key points
- Around 1.5 million people across the UK rely on heating oil rather than the mains gas network, mostly in rural areas.
- The heating oil market is unregulated, meaning global price changes are quickly passed on to customers.
- Prices rose sharply following conflicts, reaching 134p per litre earlier in the year and currently standing at around 111p per litre.
- Rural residents, local businesses, and community care services report severe financial strain from the increased heating and vehicle fuel costs.
- The Competitions and Markets Authority (CMA) has stated that heating oil customers in remote areas are vulnerable to price shocks and require stronger safeguards.
- Campaigners are calling on the government to remove VAT on heating oil and LPG for six months to support rural residents during the energy crisis.