More than 1.5 million households in the United Kingdom that rely on heating oil are in need of stronger consumer protections to address increasing price volatility, according to a recent report from the Competition and Markets Authority (CMA). The regulator cautioned that as fluctuations in heating oil costs become more frequent, the measures currently in place do not adequately support these consumers compared to those using gas and electricity.

The CMA called on both the UK government and devolved administrations to implement enhanced safeguards for heating oil customers. Key areas identified for improvement include clearer requirements for price quoting, more transparent procedures for contract cancellation, and additional support for vulnerable consumers who may be disproportionately affected by sudden price spikes.

The market study by the CMA was initiated following significant disruptions linked to the conflict in the Middle East, which led to sharp increases in wholesale oil prices. These supply pressures translated into dramatic retail price rises, with average heating oil costs peaking nearly 92 percent higher than previous levels. Despite this surge, the CMA found no evidence that suppliers were making substantial profits from the increased prices.

The regulator emphasized that heating oil consumers, unlike those connected to the national gas and electricity grids, currently lack robust protections that could help mitigate the impact of such market shocks. The call for regulatory strengthening reflects concerns that without intervention, vulnerable households may face increased financial hardship during periods of market instability.

The CMA’s recommendations aim to bring the heating oil sector more in line with other domestic energy markets, promoting fairness and transparency while addressing the unique challenges experienced by off-grid consumers. Governments are now expected to consider these findings as they work toward ensuring more consistent consumer protections across all fuel types.