Hundreds of households who rely on heating oil could be in line for compensation after suppliers cancelled orders and left customers paying up to £350 extra to keep warm.
The Competition and Markets Authority (CMA) has found that around 1,700 households were caught up in the chaos this spring after a sharp spike in heating oil prices triggered by turmoil in the Middle East. Many families had already agreed a price with their supplier, only for deliveries to be cancelled at the last minute.
They were refunded for the original order but then had little choice but to buy replacement heating oil at far higher prices – or go without fuel altogether. Some customers were forced to pay between £100 and £350 more than they had budgeted.
The watchdog has now secured agreements from a number of suppliers to compensate affected households, although it warned some firms have yet to sign up.
Under the compensation plans, customers will either receive a payment covering the difference between the cost of their cancelled order and the replacement delivery, or have their original order honoured at the agreed price if they decided not to reorder.
The CMA has not yet confirmed when payments will begin. It said: “A number of firms still have not agreed to compensate affected customers. We’ll be pressing them to do so and are preparing to take enforcement action if they don’t.”
The dispute erupted after conflict in the Middle East sent wholesale fuel prices soaring, causing heating oil prices to jump by as much as 92% at the height of the disruption.
Figures from Sutherland Tables show the average price of kerosene climbed to £1.05 a litre in the three months to June 2026, up from 71p a litre during the previous three months – an increase of almost 48%.
Heating oil remains the main source of heating for around 1.7 million UK homes, particularly in rural areas that are not connected to the gas grid.
Unlike gas and electricity customers, households buying heating oil have far fewer consumer protections because the market is largely unregulated.
The CMA said that left many customers exposed when prices became volatile and suppliers cancelled orders. It found households in Scotland faced the highest average heating oil prices, while Northern Ireland had the lowest. Rural and remote communities often pay more because there are fewer suppliers and higher delivery costs.
The watchdog is now calling for ministers in Westminster and the Northern Ireland Executive to introduce stronger protections for heating oil customers.
Its recommendations include minimum standards governing price quotes and order cancellations, access to an independent dispute resolution scheme, clearer rules on payment plans and minimum order sizes, and a register of vulnerable customers who could receive additional protection during supply disruptions.
The CMA said stronger safeguards were needed to ensure households were treated fairly during future supply shocks caused by severe weather or international events.