Heating oil customers to receive compensation after cancelled orders during price surge
Hundreds of heating oil customers are set to receive compensation after suppliers cancelled orders as prices surged following the outbreak of conflict in the Middle East.
The Competition and Markets Authority (CMA) intervened amid concerns that some cancellations may have breached customers’ contracts, leaving households facing substantially higher costs to secure replacement fuel — or, in some cases, going without heating oil altogether.
Around 800 affected customers have already been notified, with eligible households not required to make a claim or contact the CMA to enter the compensation scheme.
Customers could have paid up to £350 more
Although customers received refunds when their original orders were cancelled, the CMA estimates those forced to place replacement orders may have paid between £150 and £350 more because heating oil prices had risen sharply.
Under arrangements secured by the regulator, customers whose suppliers have joined the compensation scheme and who paid more for replacement oil will receive a payment covering the difference between their original and replacement orders.
Customers who did not buy replacement oil will instead have their original order honoured at the price they initially agreed to pay.
Those seeking reimbursement for a more expensive replacement purchase will need to provide evidence, such as a receipt and delivery note. Eligible customers either have been, or will be, contacted directly.
Northern Ireland prices jumped by around 70%
Northern Ireland households experienced an especially sharp rise in heating oil costs as the crisis developed, according to CMA figures.
The average retail price of heating oil in Northern Ireland rose from around 57 pence per litre in February 2026 to 97p in March. The CMA records the average increase as 39p per litre, with the displayed monthly prices rounded to the nearest penny.
Based on the rounded monthly prices, that represents an increase of around 70% in just one month — highlighting the scale of the price shock for households here which rely on oil-fired heating.
Despite the sharp rise, Northern Ireland remained the cheapest of the four UK nations for heating oil in March. The average price was 97p per litre here, compared with 103p in England, 106p in Wales and 113p in Scotland.
UK heating oil prices surged
Across the UK as a whole, consumers paid around £200 more for a typical 500-litre order in March 2026 than they would have in February, with the average cost increasing from approximately £320 to £520 — a rise of 64%.
Around £170 of that £200 increase reflected higher wholesale costs, according to the CMA.
UK average heating oil prices increased from 64p per litre in February to 104p in March and subsequently peaked at 123p in April — 92% above the February level.
Prices declined by 15% in May to an average of 104p per litre, although they remained above levels seen before the conflict in the Middle East began. Around 1.5 million UK households rely on kerosene heating oil for warmth and hot water.
CMA: ‘Heating oil isn’t a luxury’
Sarah Cardell, Chief Executive of the CMA, said:
“Heating oil isn’t a luxury, it’s a necessity that many people rely on to have hot water and warm homes.
“During the price spikes earlier this year, hundreds of customers were left out of pocket or without fuel after their orders were cancelled. That’s why we’ve pressed suppliers to put it right.
“They’ve now agreed to compensate those affected by issuing compensation or honouring their original contracts.”
The CMA said it will continue working with suppliers to finalise compensation arrangements and ensure affected customers receive the payments they are due.
Anyone affected can find further information on the CMA’s heating oil consumer protection case page.
