The UK government announced a £53 million aid package for vulnerable households using heating oil amid a sharp price rise linked to the recent Iran conflict. Prime Minister Sir Keir Starmer confirmed the funding as part of a response to the surge in oil prices following military strikes near Iran and Tehran’s closure of the Strait of Hormuz.
Rising Oil Prices and Market Impact
Since strikes by the US and Israel on February 28, crude oil prices have jumped from $71 to above $100 per barrel, driven by concerns over supply disruptions at the Strait of Hormuz, a critical passage for over 20% of global oil shipments. Although the UK’s energy price cap covers mains gas and electricity until the end of June, heating oil—which serves about 6% of UK households, mainly in rural areas, and nearly two-thirds of Northern Ireland homes—is excluded.
Government Actions and Regulatory Enforcement
Starmer emphasized the government’s commitment to regulate the heating oil market and warned of legal action if suppliers violate laws. Reports from customers indicate that heating oil costs have doubled, with some suppliers cancelling orders and then raising prices substantially. The £53 million fund aims to provide immediate relief to the most exposed households affected by these price spikes.
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