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Start your planHeating oil customers to get compensation after price rises
Find out if you're among the 1,700 oil-heated households who could get their money back
Around 1,700 households who use heating oil may be refunded for extra costs they paid for heating oil deliveries this Spring. Many customers lost money when heating oil prices jumped up, finding that their pre-arranged contracts were cancelled last minute and they were forced to reorder at much higher prices.
An investigation by the Competition and Markets Authority (CMA) has found that while heating oil customers were refunded for their original cancelled order, many had to buy heating oil again at a higher price, or opt to go without fuel.
Some people paid between £100 and £350 more than expected for their heating oil delivery.
The situation arose as the conflict in the Middle East escalated earlier this year. Disruption in supply caused the price of heating oil to spike up to 92% higher than usual.
Some heating oil suppliers have now agreed to compensate affected customers. If that's you, you'll get either:
- A payment covering the difference between the price of your cancelled order and your replacement order
- Your original order honoured at the agreed price (this applies if you didn't buy replacement oil).
Fed up with volatile heating oil prices? Find out about the new £9,000 heat pump grant for heating oil homes.
How to get heating oil compensation
Compensation isn't being paid out yet as far as we know.
How many suppliers have agreed to repay customers hasn't been made public but 'a number of firms still have not', the CMA said.
'We'll be pressing them to do so and are preparing to take enforcement action if they don't,' it added.
Once the scheme is up and running, more detail should be available and we'll update this story.
Why are heating oil prices so high?
The average price of a litre of kerosene reached £1.05 in the three months to June 2026, according to energy pricing data collector Sutherland Tables.
That's 34p per litre higher than in the three months to March 2026.
The price increases are a result of rising wholesale costs after the Middle East conflict.
Prices vary around the UK. The CMA found:
- The highest average price was in Scotland
- The lowest average price was in Northern Ireland.
Households in remote areas, including in parts of Scotland, have less choice of suppliers and higher costs of getting oil to them, which can result in them paying more.
Find out how to get the best heating oil prices.
New protection plans for heating oil customers
The CMA found that heating oil customers are not as well-protected as those connected to the gas grid.
It said that this becomes more of a problem when there is volatility, such as:
- increased demand for oil in severe weather
- geopolitical events disrupting supply.
Following a market study, the CMA recommends that the UK government and Northern Ireland Executive introduce new regulations for heating oil suppliers. It says these regulations should:
- set minimum standards for suppliers on how prices are quoted, cancellations are managed
- give households access to independent dispute resolution
- require suppliers to make clear payment plans and minimum purchase volumes
- create a register for vulnerable households so it's easier to protect them.
The CMA says it will work with governments, industry and regulators on its recommendations.
