"Heating our homes and having reliable hot water are basic needs," the Competition and Markets Authority has said, as it called for new rules for the UK’s heating oil market. For roughly 1.5 million households living off the gas grid, the watchdog says the present system leaves people too exposed when prices jump or deliveries go wrong. That will ring true in rural communities where heating oil is not a backup but the main way people get through winter. The CMA wants ministers in Westminster and the devolved governments to put in place firmer, but still proportionate, protections for customers.

The case is simple enough. Unlike electricity and mains gas, heating oil is usually bought in one go, often with bills of £500 or more landing at once. That creates a very different sort of pressure for households, particularly older residents, people on tight incomes and villages where there is no easy alternative. For readers in the North, and especially in scattered communities beyond the main networks, the issue is less about market theory and more about whether a family can afford to fill the tank before a cold spell. In Northern Ireland, where more than 60% of households rely on heating oil, the question is even more immediate.

The CMA began its market study after conflict in the Middle East sent shockwaves through supply chains and pushed average retail prices sharply higher. The regulator’s conclusion is not that the whole sector is stitched up. It found the market is generally competitive and said suppliers did not materially profit from the crisis overall. Most households, it said, do have a choice of supplier and some access to price information. But that is only part of the story. According to the CMA, many heating oil customers still do not have the protections that gas and electricity users take for granted, including proper support for vulnerable households and access to independent dispute resolution when things go wrong.

The price jump was severe. Average heating oil prices across the UK rose from 64p per litre in February 2026 to 104p in March 2026, then peaked at 123p in April, a rise of 92% from February. A typical 500-litre order that might have cost about £320 in February was closer to £520 in March. The CMA says about £170 of that March increase reflected higher wholesale costs. Its analysis found wholesale movements accounted for 83% of the rise, with supplier operating costs making up a further 6%. That does not make the hit any easier for households paying upfront, but it does matter in judging where the pressure came from.

The regional picture was uneven. Northern Ireland remained the cheapest market, moving from 57p to 97p per litre between February and March 2026, helped by the fact that households are closer together and deliveries cost less to make. England rose from 65p to 103p, Wales from 64p to 106p, and Scotland from 69p to 113p. That last figure matters. The CMA says more remote parts of Scotland generally face less choice and higher delivery costs, and some of those areas saw sharper rises after the Middle East crisis. The same basic problem will feel familiar to off-grid communities elsewhere: when distance pushes up costs, the customer carries the strain.

To close that gap, the watchdog is urging the UK government and the Northern Ireland Executive to bring in a new regulatory system for heating oil suppliers. The plan would require firms to register and meet minimum standards on price quotes, cancellations and complaints, while giving customers access to independent redress. The CMA also wants clearer signposting of payment plans and minimum order volumes, plus a register of vulnerable households so support can be targeted better when supply is tight or severe weather hits. It is also calling for a review of minimum order rules, which can stop people buying smaller, more affordable amounts of fuel.

There is a Scottish angle too. The regulator says ministers should look at a price-checking tool for Scotland modelled on the Consumer Council for Northern Ireland service, which already helps households compare rates. It also says governments should think seriously about whether communities most exposed to high heating oil prices ought to be pushed nearer the front of the queue for alternative heating systems. That is a bigger political point than it first appears. If decarbonisation is going to ask more of rural and off-grid places, then those same places cannot be left waiting at the back when help, investment and newer heating options are being handed out.

Alongside the wider market study, the CMA has been investigating cancelled orders that may have breached contract terms. Its analysis suggests around 1,700 households were affected. Some families got their money back, but still had to reorder at much higher prices or go without fuel, leaving them between £150 and £350 worse off. Following talks with the regulator, several suppliers have agreed to compensate customers by paying the difference or honouring the original price. Others have not. Sarah Cardell, chief executive of the CMA, said households had been "left in limbo" and warned the watchdog is preparing court action against firms that refuse to put things right.

The CMA has also written separately to suppliers of liquefied petroleum gas, another off-grid fuel used for heating and cooking, to remind them of their duties under consumer law. It stressed that no finding of wrongdoing has been made at this stage. What comes next is slower, but no less important. The watchdog says it will now work with governments, regulators and the industry on its recommendations while continuing to press suppliers over compensation. Around 60% of heating oil orders are now placed online, but the old problem remains much the same: outside the main networks, too many households are still being asked to carry too much risk on their own.