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Heating Oil Prices Surge and Deliveries Cancelled Amid Middle East Conflict

Heating oil prices have surged and deliveries cancelled for many UK households amid Middle East conflict, causing hardship especially for vulnerable customers reliant on kerosene heating.

·5 min read
BBC A delivery driver pulls the hose out of a small oil tanker lorry as it is parked by the side of a residential street.

Heating Oil Supply and Price Issues Affecting Households

Since the United States and Israel initiated military actions in Iran, households dependent on heating oil have experienced a doubling of their bills, cancellations of orders, and in some cases, complete inability to obtain heating oil.

Approximately 1.7 million households in England and Wales use kerosene for heating and hot water. Unlike gas and electricity, heating oil prices are not subject to price caps and are highly volatile.

Nicki Weetman, a resident of Sturminster Newton, Dorset, currently undergoing chemotherapy, requires consistent heating but has had to ration usage after a supplier cancelled her delivery.

Boiler Juice, an intermediary website that placed the order on behalf of supplier Tincknell Fuels, stated that the industry is prioritizing deliveries for vulnerable customers and encouraged the Weetman family to make contact.

Heating oil, unlike mains gas, must be ordered and delivered in bulk every few months to a tank installed at each property. Many households place orders through oil clubs or online platforms such as Boiler Juice, which connect customers with competitive deals.

Ms. Weetman reported paying £346 for 500 litres via Boiler Juice on 28 February, coinciding with the first day of air strikes in Iran. However, on the scheduled delivery day, 9 March, her order was cancelled and refunded, with a new quote of £841 for re-ordering.

The email from Boiler Juice included a message from Tincknell Fuels stating:

"We were unable to fulfil the orders due to stock issues as we were let down by multiple suppliers over the whole week and, with prices rocketing up, we were not in a position to continue with the orders. We also had email issues and were unaware of the large volume of orders placed over the weekend... we are not in a position to fulfil any outstanding orders for all Gillingham zones."

Ms. Weetman expressed her distress:

"This is so distressing for me. We're on a third of a tank of oil. I must have the heating on as I'm in chemotherapy and get so cold, but we've allowed ourselves to have the hot water on just once a day. Once we're out of oil, it'll be hot water bottles and electric blankets."

Boiler Juice CEO Tim Buckman conveyed his concern regarding the Weetmans' circumstances:

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"We will investigate and offer as much support as we can."

He added:

"We are aware of a small number of cancellations initiated by few suppliers. The vast majority - many thousands - of orders are being delivered as expected. In those instances of disrupted orders we are working with customers to secure alternative deliveries and minimise the impact and inconvenience."

Price Volatility and Affordability Challenges

Chris Wheeler from Bucklebury, Berkshire, noted that prices are "heading out of sight." He shared his records indicating that in 2020, 1500 litres cost £496. Recently, he ordered 1000 litres for £641, though the delivery has not yet occurred.

"It's one of those things you can't budget for because you never know what's going to happen with oil prices," he said.

Chris Wheeler Chris Wheeler stands next to his dark green heating oil tank in his garden. He is wearing glasses, a blue sweatshirt and beige cargo trousers. The cylinder-shaped tank is in the corner of the garden in front of an old brick wall.
Chris Wheeler says it is impossible to budget for heating oil because of its price volatility

Mandy Willis of Shillingstone, Dorset, intended to refill her tank but stated she can no longer afford to do so. Compounding her uncertainty, some suppliers have warned that their price quotes are "indicative" and subject to change on the delivery day.

She explained:

"Our last purchase of 500 litres cost £325 last autumn. We went to place an order last weekend and now the cost is £682 for the same amount. That cost is only a quote and the actual charge could be even higher on the day."
Many Willis A smiling Mandy Willis tilts her head to one side. She has shoulder length brown wavy hair and glasses.
Mandy Willis said suppliers had warned prices could change on the day of delivery

Political Response and Industry Discussions

Rural Members of Parliament from across the United Kingdom convened with government ministers at Westminster on Wednesday to address the heating oil supply and pricing issues.

East Hampshire MP Damian Hinds stated:

"I've got thousands of constituents who rely on oil for their heating and hot water. We need help right now to make sure people can afford to heat their homes, particularly those vulnerable customers who might otherwise struggle. We got a very clear message from the ministers that there is no issue with supply of oil. There was a month's worth of orders placed within a couple of days and, of course, that has a big effect on pricing and being able to get a delivery in a timely fashion. That should ease off over time but... when people have had individual issues with deliveries or with orders not honoured - that's really bad."
MP Damian Hinds stands outside Parliament during an interview with the BBC. He is wearing a dark grey suit and a light blue shirt and tie.
East Hampshire MP Damian Hinds said there was not an oil supply shortage

Newbury's Liberal Democrat MP Lee Dillon remarked that families in his constituency are "being left to shoulder the worst of these global shocks, at the very moment they are already battling the cost‑of‑living crisis." He noted that 30 percent of homes in his area are off the gas grid, leaving over 13,000 households "abandoned" by the government.

He added:

"The government must provide immediate relief for households facing rocketing oil and gas prices caused by the conflict in the Middle East."

On Tuesday, Chancellor Rachel Reeves announced that the Competition and Markets Authority would investigate heating oil market issues to ensure customers are treated fairly.

This article was sourced from bbc

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