Scots households seeing heating oil prices 'double', says consumer watchdog

Some households in Scotland are seeing heating oil prices double, a consumer watchdog has said.

It comes after the UK’s competition watchdog said it is investigating concerns that households relying on heating oil are facing sudden price increases on the back of the conflict in the Middle East.

The Competition and Markets Authority (CMA) said it had kicked off a review after receiving “troubling reports” from customers.

This includes complaints from people that existing orders for heating oil had been cancelled, and customers were then sent new quotes at significantly increased prices.

It is also probing cases of households facing price increases for automated deliveries, which are triggered when the fuel in a tank drops to a certain level.

Home heating oil is used by around 1.5 million households in the UK, but sudden volatility in the global oil trade has caused prices to spike by up to £100 in the past week alone.

An estimated 142,000 households in Scotland use heating oil to heat their homes.

Households reliant on home heating oil are almost twice as likely to suffer from extreme fuel poverty.

Consumers living in off-gas communities are more likely to be over the age of 60, and more likely to suffer from poorer levels of energy efficiency.

A spokesperson for Consumer Scotland said: “The situation in the Middle East has resulted in sharp increases in oil and gas prices in recent days which is having a direct impact on consumers in Scotland who rely on heating oil and whose prices are not capped in the same way as those of other households.

“An estimated 142,000 Scottish households use heating oil to heat their homes. Many of these households will not need to refill yet.

“However, for those that do they may have seen prices double the level at which they have been over the past two years.

“Government should consider as a priority how best to target support at households that most need it if the situation continues.

“The Competition and Markets Authority is gathering evidence to consider whether retailers’ practices break competition or consumer law. Consumer Scotland is engaging with the CMA to help inform their review, on behalf of consumers in Scotland.”

Heating oil customers fall outside Ofgem’s energy price cap protection, which currently fixes prices until the end of June.

The CMA said it was writing to heating oil suppliers and intermediaries “as a matter of urgency” to gather evidence and consider whether the behaviour breaches consumer protection laws – which could result in enforcement action.

It stressed that it should not be assumed that any businesses have broken the law, and that many retailers are facing significant pressures from rising wholesale costs.

Sarah Cardell, chief executive of the CMA, said: “We know many households are worried about rising prices as global events push up wholesale oil costs.

“It’s inevitable that some prices will rise, but they should reflect genuine cost pressures.

“We’ve heard troubling reports from heating oil customers about cancelled orders and sudden price increases – and are moving quickly to get to the bottom of these concerns.

“As always, we stand by consumers and will make sure they are treated fairly.”

Chancellor Rachel Reeves said she was going to be meeting the CMA on Thursday and said the Government was working with the watchdog to tackle “any price gouging” in heating oil.

Consumers who need advice and information can report any issues to Advice Direct Scotland via consumeradvice.scot or by calling 0808 164 6000.