Heating Oil Prices: What’s Driving the Rise and What Support Is Available

Heating Oil Prices: What’s Driving the Rise and What Support Is Available

Ongoing conflict in the Middle East is continuing to disrupt global energy markets. Much of the world’s oil supply moves through the Strait of Hormuz, a key shipping route where recent tensions have created supply risks and sharp price swings. These global pressures are feeding directly into UK heating oil prices, which have risen steeply in recent weeks.

Around 1.5 to 1.7 million UK households rely on heating oil. Many of these homes are in rural off‑gas areas, including large parts of Devon. Because heating oil is not covered by the energy price cap and requires large upfront payments, sudden price increases can place significant pressure on household budgets. Recent reports from suppliers show rises of 10 to 20 pence per litre within days, with some households struggling to secure affordable deliveries.

How this links to gas and electricity bills

The wider energy market is also being affected. Although heating oil sits outside the price cap, movements in global oil and gas markets influence the wholesale costs that Ofgem uses when setting the cap for mains gas and electricity. From 1 April, the new price cap will reduce the annual bill for a typical dual‑fuel household paying by Direct Debit to £1,641, a decrease of £117 or 7% compared with the previous period. This reflects lower wholesale prices earlier in the year and recent changes to how environmental and social scheme costs are applied to bills. While this offers some short‑term relief, wholesale prices remain sensitive to global events, and future caps may rise again if market pressures continue.

Local support for low‑income households

The Government has committed over £50 million to support low‑income households who heat their homes with oil. In England, this funding is being delivered through the Crisis and Resilience Fund, with allocations directed to areas with higher numbers of oil‑heated homes. Devon is one of these areas.

Devon is receiving £1.3 million from the fund to support eligible low‑income households facing rising heating‑oil costs. From 1 April, this support will be delivered through Devon’s district councils rather than directly by Devon County Council. More information is available here.

West Devon Borough Council (WDBC) will be one of the local delivery partners once the scheme is confirmed. WDBC will manage applications from residents in West Devon and distribute the Heating Oil Grant through the Crisis and Resilience Fund.

MoneySavingExpert Is Collecting Heating‑Oil Information

MoneySavingExpert is collecting feedback from households across the UK who rely on heating oil. They are gathering real‑world information on recent prices, delivery times, minimum‑order requirements and the wider impact on rural off‑gas communities. MoneySavingExpert is inviting heating‑oil users to share information about recent prices, delivery times and minimum‑order requirements. The data they collect will help build a clearer national picture of how current market conditions are affecting households in rural off‑gas areas. You can share your experience or feedback here.

Support with the upfront cost of fuel

For households living off‑gas and relying on oil, LPG, calor gas, wood or coal, the upfront cost of a delivery can be difficult to manage.

Lendology offers 0% bulk‑fuel loans to help spread these costs across the year. Their assessments are based on individual circumstances rather than credit scores alone, making support accessible to more households. Repayments are made by direct debit.

You can find out more and check eligibility on their website here.

How Tamar Energy Community can help

Tamar Energy Community provides free and impartial energy advice for households across West Devon and the Tamar Valley. Our energy advisors can explain grant eligibility once details are confirmed, talk through options for managing rising fuel costs, and signpost householders to wider support. If you need support get into contact here.


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