Energy Secretary Ed Miliband said the UK government will “fight people’s corner” amid rising energy prices linked to the conflict in Iran, but he did not specify how the government plans to provide support. Speaking on Sky News, Miliband emphasized actions against unfair pricing by petrol retailers and heating oil companies.
Government Warns Retailers Against Price Gouging Ahead of Support Announcement
Miliband warned petrol and heating oil retailers that the government will not tolerate price gouging or unfair practices, despite some backlash from the industry. On Friday, Miliband and Chancellor Rachel Reeves met with fuel retailers to caution against profiteering amid elevated crude oil prices caused by tensions in the Middle East.
Sky News reported a potential support package for the poorest households using heating oil could be announced as soon as Monday. This comes as heating oil prices rise sharply due to Iran’s closure of the Strait of Hormuz, a critical shipping lane responsible for roughly 20% of global oil exports.
Heating Oil Crisis Affects Off-Grid and Rural Households
While the energy price cap on gas and electricity is set to fall by an average of £117 starting in April and will not increase before July, it does not cover heating oil. Approximately 1.1 million homes in England and two-thirds of homes in Northern Ireland rely on heating oil or liquefied petroleum gas, especially in rural areas not connected to the gas grid.
Miliband acknowledged the fossil fuel market’s volatility, citing the “rockets and feathers” pattern where wholesale fuel price increases are quickly passed to consumers, but price decreases take longer to materialize. He linked the instability to geopolitical conflict and called for strengthening renewable and nuclear energy generation instead of expanding new North Sea oil and gas exploration licenses.
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