CMA Ensures Compensation for Customers Affected by Heating Oil Issues

Compensation Scheme for Customers Affected by Heating Oil Price Spikes

In the wake of significant price increases for heating oil, customers are set to receive thousands of pounds in compensation following an investigation by the Competition and Markets Authority (CMA). The authority found that numerous suppliers had cancelled orders during a period of soaring prices, potentially breaching contractual agreements.

Many customers who ordered heating oil through intermediaries faced cancellations and refunds for their original orders. However, this left them in a difficult position, as they were forced to purchase replacement oil at considerably inflated prices. The CMA estimates that customers may have incurred additional costs ranging from £150 to £350 for their replacement orders.

As a result of the CMA’s intervention, suppliers participating in the compensation scheme will reimburse affected customers for the difference between their original and replacement orders. Furthermore, customers who opted not to purchase replacement oil will have their initial orders fulfilled at the original price.

Streamlined Process for Affected Customers

Customers eligible for compensation do not need to take any action at this time, as they will be contacted directly by the suppliers. Approximately 800 customers have already received notifications regarding their compensation. Those seeking reimbursement for replacement purchases will need to provide documentation, such as receipts and delivery notes, to substantiate their claims.

The CMA is collaborating with suppliers to ensure that compensation arrangements are finalised efficiently, guaranteeing that all affected customers receive the payments they are owed.

Heating Oil: An Essential Commodity

Sarah Cardell, Chief Executive of the CMA, emphasised the importance of heating oil as a necessity for many households. She stated, “Heating oil isn’t a luxury; it’s a necessity that many people rely on for hot water and warmth in their homes.” During the significant price surges earlier this year, numerous customers were left without fuel or incurred unexpected costs due to cancelled orders. The CMA’s actions aim to rectify this situation by ensuring suppliers take responsibility.

Current Heating Oil Market Trends

Statistics reveal a dramatic rise in heating oil prices over the past months. For instance, the average retail price for heating oil surged from 64 pence per litre in February 2026 to 104 pence per litre in March 2026, marking an increase of 64%. This spike led to an average customer expenditure of approximately £520 for a typical 500-litre order, compared to around £320 in February.

As of March 2026, the average prices reached a peak of 123 pence per litre in April 2026, representing a staggering 92% increase since February. Although there was a slight decline of 15% in May 2026, prices remain elevated, influenced by ongoing geopolitical tensions in the Middle East that have affected the market.

Contact Information for Further Inquiries

For general inquiries, the public can reach the CMA at general.enquiries@cma.gov.uk. Media representatives can contact the CMA via email at press@cma.gov.uk or by phone at 020 3738 6460. For urgent media inquiries outside of standard hours, the out-of-hours contact number is 020 3738 6878. The CMA’s office is open Monday to Friday from 9 am to 5:30 pm, excluding bank holidays.