The industry association says it continues to work with government, local authorities and other stakeholders to support households that rely on heating oil and provide clear information on market conditions.
Earlier this year, conflict in the Middle East resulted in sharp increases in wholesale jet fuel prices, which in turn drove higher heating oil prices across the UK. Since heating oil and jet fuel are both kerosene-based products, movements in the wholesale jet fuel market have a significant influence on the price paid by heating oil distributors.
Since then, the Competition and Markets Authority (CMA) has completed its market study into domestic heating oil. Its analysis found that wholesale costs accounted for 83% of the increase in retail heating oil prices between February and March, with supplier operating costs accounting for a further 6%. The CMA also described the market as generally competitive, although it also recommended stronger consumer protections for the 1.5 million UK households that depend on heating oil.
Customer support
UKIFDA says its members are continuing to support customers as winter approaches and is encouraging households to monitor tank levels and order in good time. The association recommends maintaining at least 500 litres of heating oil in the tank, wherever possible, to reduce the risk of running low during periods of high demand, severe weather or unexpected delivery delays.
Ken Mackness, chief executive of UKIFDA, said: “Our members remain committed to supporting customers throughout the winter.”
He encouraged households to “plan ahead, monitor tank levels regularly and maintain adequate heating oil reserves.”
UKIFDA is also reminding consumers that financial support remains available for eligible households.
More than £50 million of targeted support for households affected by higher heating oil costs was announced by the UK Government in March, with funding allocated across England, Scotland, Wales and Northern Ireland. In England, support is being delivered through local authorities as part of the Crisis and Resilience Fund.
UKIFDA advises customers experiencing difficulties to check the support available in their nation and to contact their local distributor to explore pricing, payment and delivery options.
The full UKIFDA statement and details of available support can be found on the association’s website here.
Image from stock