Heating oil customers whose deliveries were cancelled during the Middle East war price surge are now eligible for up to £350 compensation following a UK Competition and Markets Authority (CMA) investigation. The watchdog found that about 1,700 customers had existing orders scrapped and were offered new deliveries at significantly higher prices, leaving many struggling to afford fuel.
Why Heating Oil Orders Were Cancelled
The Iran war triggered an energy price shock, with heating oil jumping 92% to 123p a litre by April. Amid the crisis, some suppliers cancelled existing contracts and demanded customers pay more—or go without fuel. The CMA stepped in after complaints of possible breaches of contract.
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Compensation Details for Affected Customers
Suppliers have agreed to compensate those affected. Customers who paid more will receive a payment covering the difference, while those who did not buy replacement oil will have their original orders honoured at the agreed price. The CMA is pressing remaining firms to comply and preparing enforcement action if needed.
| Compensation Type | Amount | Eligibility |
|---|---|---|
| Price difference refund | £150 – £350 | Customers who paid higher rates |
| Order honouring | Original price | Customers who didn't buy replacement |
Key Takeaways for Heating Oil Users
- 1,700 customers were affected by cancelled orders
- Compensation ranges from £150 to £350 per person
- Suppliers must pay the difference or honour original prices
- CMA may take court-based enforcement against non-compliant firms
- About 1.5 million UK households rely on heating oil
Who Is Affected by This Issue
Most impacted are households in rural UK areas not connected to the mains gas network. These homes use heating oil (paraffin, also known as kerosene) for warmth, cooking, and hot water. The CMA chief executive Sarah Cardell said customers were “left in limbo” after orders were cancelled.
FAQ
How do I know if I qualify for heating oil compensation?
If your heating oil order was cancelled during the Middle East war price surge and you paid more or didn't get fuel, you may qualify. Contact the CMA or your supplier to check eligibility.
What is the maximum compensation amount?
Customers can receive up to £350, covering the difference between the original and new price. Some may get their original order honoured at the agreed price.
What if my supplier refuses to pay?
The CMA is preparing enforcement action against holdout suppliers, including court action. Report non-compliance to the CMA directly.
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