Need to know
Heating oil is not protected by the energy price cap and its price per litre has spiked in recent weeks following disruption of shipping in the Strait of Hormuz
Help for houses that rely on heating oil has been announced(Image: coldsnowstorm via Getty Images)
What you need to know as new energy support announced by Keir Starmer
- Sir Keir Starmer has announced new cost of living help for the 1.5 million households that rely on heating oil to warm their homes following huge prices hikes caused by the Middle East war.
- Heating oil is not protected by the energy price cap and its price per litre has spiked in recent weeks after Brent crude soared above $100 a barrel, following disruption of shipping in the Strait of Hormuz.
- Some households say they have also had orders of heating oil cancelled, with companies forcing them to reorder at much higher prices.
- Sir Keir confirmed held a press conference in Downing Street this morning, where he announced £53million in support for “those households that are most exposed” to rising heating oil prices.
- The PM also revealed he has issued a legal direction to energy companies so that every penny of savings announced in the Budget is passed directly onto customers.
- UK energy bills are set to fall by an average of £117 per year for typical household when the Ofgem price cap is updated in April – with the majority of savings coming from Government action to remove certain costs from household bills.
- The PM said: “This Government will always support working people. That is my first instinct, and that is my first priority. I’m announcing immediate support for vulnerable heating oil customers today, providing £53million for those households that are most exposed.”
- It comes after Chancellor Rachel Reeves said Treasury officials have “found the money” to help people relying on heating oil.
- Last week, Ms Reeves and Energy Secretary Ed Miliband met oil firm bosses and forecourt operators to warn them against profiteering.
- The RAC said the average price of diesel at UK forecourts on Sunday was 160.3p per litre. This is compared with 142.4p when the US-Israeli campaign against Iran began on February 28.
- Petrol prices are up 7% over the same period, rising from 132.8p per litre to 141.5p per litre. The last time petrol was more expensive was August 2024.
- The conflict in the Middle East is also expected to increase the price of gas and electricity in the UK. Analysts Cornwall Insight said forecasts for Ofgem’s price cap for July to September had surged to £1,801 a year – an increase of £160 the April price cap.
- However, it said the final price cap figure would be based on average wholesale prices over a three-month period, meaning that it would depend on how long the Middle East conflict goes on for.
- READ THE FULL STORY: PM will announce major energy bills help in Iran war press conference
