Energy · Policy & net zero · 3 November 2026
UK Government to regulate heating oil market
The UK Government will introduce a regulatory regime for the heating oil market in Great Britain, according to House of Commons Library. Northern Ireland will amend existing consumer protections instead. Heating oil prices are not currently covered by the energy price cap.
House of Commons Library has published details that the UK Government will introduce a proportionate regulatory regime for the heating oil market in Great Britain. The announcement notes that heating oil prices are not currently regulated by Ofgem or covered by the energy price cap. In Northern Ireland, the Executive will amend existing consumer protections rather than introduce a new regulatory regime.
Figures published with the announcement show that the average price of home heating oil in the UK increased by over 100% between the end of February and mid-March 2026. Prices rose from approximately 60 pence per litre (ppl) to 120 ppl during that period. By September 2026, heating oil prices increased above 100 ppl and remain at around 110 ppl.
The US/Israel-Iran conflict has disrupted the transit of crude oil through the Strait of Hormuz, causing global fossil fuel prices to increase. The Strait of Hormuz accounts for 25% of the world’s seaborne oil shipments. In Northern Ireland, 49.5% of households used heating oil as their sole source of heating, while 62.5% used it for some of their heating.
Household reliance on heating oil varies significantly across the UK. While 3.5% of households in England and Wales and 5.1% in Scotland use it as their sole heating source, the CMA conducted a Heating Oil market study in 2026. This followed earlier investigations into the energy market in 2011 and between 2014 and 2016.
Written by StreetOwl from House of Commons Library’s own announcement. It was drafted by StreetOwl’s own model, every figure and quotation was checked by code against the announcement, and it was read and approved by Michael Rossi before it went up. It says what was announced, not what anyone should do about it.
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