Regulation of volatile heating oil market won’t
help rural families fill the tank this winter
13 October 2026
Action with Communities in Rural England, the national charity for everyone living in rural communities, has warned that the government’s move to regulate the heating oil market will not tackle the ongoing problem of high and volatile prices, and has called for an immediate cut to VAT on heating oil and LPG
Corinne Pluchino, Chief Executive of ACRE, said, “While we welcome the government’s announcement this morning that they intend to accept the recommendations of the Competition and Markets Authority’s study of the heating oil market, we do not believe the action will address the fundamental problem facing the 1.7 million UK households who are off the gas grid, mostly in rural areas, and have to use heating oil or other alternatives, such as liquified petroleum gas.
“This is an urgent issue for families today.
“For those households, especially those nearing the end of their current supply, the real issue is the high and volatile price of heating oil, which is adding hundreds of pounds to their bills because the fuel has to be bought in bulk.
“On 28 February, prior to the start of the war in Iran, a litre of heating oil cost 61 pence on average.
“Today, the average price sits at 112 pence per litre, more than 80 per cent higher than the pre-war price, meaning a typical order of 1,000 litres now costs £1,120 instead of £610.
“These are much bigger increases than the rise in the energy price cap for gas and electricity. And the price changes from day to day, making it very difficult for households to know when they should refill their tank ahead of the winter.
“The CMA did not recommend regulation of the price of heating oil. Their focus was on increasing consumer protection and standards in the market.
“And while this is certainly important, it will not address the urgent issue that off grid families are facing today who are not protected by the energy price cap.
“It also does nothing to address the fact that fuel poverty is already higher in off grid households than those on the grid.
“The government should provide additional financial support to households on heating oil and LPG urgently and give breathing space to off-grid households.
“We are calling for the removal of VAT from heating oil and LPG bills for six months in the Budget, as well as additional support for families on low to middle incomes, to help them refill their tanks ahead of the winter.”
