Home heating oil and LPG crisis update: Our dossier for the Government based on the issues YOU reported in your 1,000s

Right now, the UK's 1.5 million heating‑oil users – in largely rural communities, which have a higher proportion of older residents, and Northern Ireland, many with no alternative fuel – are being clobbered by a perfect storm. They are being hit by extreme price rises and sharp practices, with firms cancelling orders and demanding extra payments.

And, unlike gas and electricity customers, they're in an unregulated market, with little protection against unfair treatment. If this happened in the mainstream energy market, we'd call it a crisis. Well, this is a crisis – happening in many villages and rural communities across the UK. It's time policymakers brought it into the light and acted. This is not sustainable and not fair.

In response to Martin's request for feedback on the heating oil and LPG markets, MSE has received thousands of social media messages and emails. We are currently working through this feedback and plan to submit a full dossier of evidence to the Department for Energy Security and Net Zero (DESNZ) and the Competition and Markets Authority (CMA) for them to consider as part of their investigation into the heating oil market.

Issue 1: Sharp increases in prices of heating oil

Across thousands of social media messages and emails, households are consistently reporting heating oil prices more than doubling within a week. A typical pattern is prices increasing from 55p to 65p per litre to £1.20 to £1.45 per litre. Some are reporting £1.55 per litre or £1.60+ per litre if a delivery is needed quickly.

• Prices have surged to double or triple normal levels leaving some households unable to afford essential heating. Those who paid £300 to £350 for 500 litres in February are now being quoted between £600 and £1,000 if they need it quickly. There are also reports of supply shortages, with some firms not quoting at all for bulk deliveries, stating "no stock" or "no oil available". Households are being told that only smaller boxes are available for £3.15 per litre – around five times the normal price for a bulk delivery in February 2026.

• Some considering switching off heating. Price spikes are driving significant affordability concerns – some are talking about turning off their heating now and many others are very worried about how they will afford these higher prices when it comes to refilling their tank.

• Emotional and financial strain is severe, especially for older, disabled and low‑income households. People mention fixed or limited incomes, age, medical issues, and rising living costs alongside oil prices. There is anxiety about staying warm and coping with these sudden bills and extreme price changes.
  
  "Prices have gone through the roof… currently, the cheapest in Cambridge area is 124p [per litre] with two-week delivery ,if you need it quicker, 166p [per litre] delivery by 10 March... In January, it was around 50p-60p [per litre]... this is not a joke people need support now."
  
  "Today I paid £703 for 500 litres, my last order was £272. I can't turn my heating off due to health reasons. Thank you for looking into this, the heating oil sector is like the Wild West at the moment."
  
  "The only thing they can offer us is Kerosene Fuel Boxes. The price is £315 for 5 x 20 litres, which I'm sure you can see works out at £3.15 per litre!!! This is way above the prices that people are talking about on the TV. It is frankly quite extortionate and we have consequently not been using our heating or hot water and are just shivering, hoping that the prices will come down."

Issue 2: Unfair practices – orders cancelled, delayed, or not honoured and firms demanding extra payment for existing orders or refusing to provide any certainty over pricing

A recurring issue is orders not being fulfilled as expected, even when placed earlier or already paid for.

• Firms are cancelling already‑placed orders – even fully paid ones – or demanding more money. People are reporting that their orders were cancelled or being told firms couldn't fulfil the entirety of a previous order placed before the spikes in prices. Firms won't honour agreed prices and are demanding extra money before they deliver.

• Re‑quotes after cancellation massively increase the price, leaving households financially exposed: Those with cancelled orders are being told to "requote", which results in a significant increase in price, leaving them out of pocket. Even where the payment has been made, customers are being offered refunds or to recalculate the order at the higher heating oil price, which results in less oil being supplied.

• People running out of oil – including medically vulnerable users – feel forced to accept inflated prices: People who are desperate for the oil or have health problems and need to keep the heating on, have little choice but to pay extra.

• New 'price‑on‑delivery‑day' policies remove price certainty and shift all risk onto consumers. There are reports of a shift to "price on day of delivery" or "quoteless" ordering, removing price certainty for people. Deposits can be demanded upfront with the final cost not clarified until the day of delivery, with an additional cost to be paid (or refund to be issued if the price is lower) or for the amount of heating delivered to be reduced.

• Problems with refunds and additional surcharges. Some households that have accepted refunds are still waiting for their money back. Others are reporting that administration or service charges are being deducted from refunds for cancelled orders.
  
  "We ordered oil on 11 February. It was cancelled this week. The refunded amount included a deduction for service charge… The new order quote was almost double. We live in a rural Essex. Am disgusted by what feels like profiteering."
  
  "This is the message I got from my supplier after I had already placed the order last week. They wanted to offer me 50% less oil for what I had already paid for, and they had taken payment on my credit card."
  
  "Our usual oil company will not issue quotes, and we were told we would find out the cost of our order for 500 litres at point of delivery… I can't think of any other instance of being in a position where you agree to buy something without knowing how much you will pay!"

Issue 3: Lack of regulation and protection – 'it’s like the Wild West'

There is widespread anger that heating‑oil is an "unregulated, unprotected" market. People don't know what their rights are and feel powerless and vulnerable.

• People feel abandoned – heating oil users have no regulator, no affordability support, and no safety net. Many are worried and feel unprotected compared to gas and electricity customers and are complaining about the lack of protection, the unfairness and that nothing is done about poor practices. Several noting similar concerns and poor practice happened after the start of the Ukraine war and the Covid pandemic.
  
  There are calls for Ofgem‑style oversight, CMA investigations and demands for action on affordability, to protect customers from poor practice and improvements on price transparency and ensuring oil firms don't breach contracts.

• People are confused about their rights and whether many current practices are even legal. There are questions about what people can do if their order is cancelled and whether some practices, such as allowing people to order oil but not giving them a quote and only telling them the price on the day of delivery, are fair and legal.
  
  "We are being held hostage in an unregulated market. We don't have a choice… Predominantly we are rural and poor. Help us… we also have a basic right to warmth."
  
  "Those of us who rely on oil to heat our homes always seem to be the forgotten ones."
  
  "I have just requested a quote from our regular supplier and they have said that they cannot give a quote but will only take orders. I will be invoiced for the price on the day of delivery. Therefore, I would be ordering something I don't know the price of. Legal?”"
  
  "I had an order in, paid for… before it kicked off. They just cancelled it saying they can’'thonour the delivery. But I can reorder at the new price. Surely they can't do this?"