UK Households Face Heating Oil Squeeze as Winter Approaches

3 min read
UK Households Face Heating Oil Squeeze as Winter Approaches
PrimeXBT Editorial Team
Reviewed by PrimeXBT

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Heating oil for households in Devon, Cornwall, Guernsey and Jersey has surged this year, with prices in England rising from about 60p a litre to about 97p a litre. Separately, Brent crude touched $106.83 a barrel this month, its highest since May 19, after tanker strikes in the Gulf. Local councils and fuel-price trackers say tens of thousands of homes face winter bills hundreds of pounds higher than last year, while the UK government has pledged extra support funding.

Heating oil in England has jumped from about 60p a litre to about 97p a litre since fighting in the Gulf intensified, price-comparison site Boiler Juice data show. Devon County Council's cabinet member for rural affairs, Cheryl Cottle-Hunkin, said the rise is creating anxiety for families already struggling with living costs.

Devon and Cornwall Feel the Pinch

Devon has 41,000 households that rely on heating oil as their main source of heat, Cottle-Hunkin said, warning many are vulnerable to sudden price spikes. She said the increases had also hit farming businesses that depend on fuel for vehicles and machinery.

According to Cottle-Hunkin: "These aren't just minor increases, they're quite severe shocks". Across the border, more than 34,500 households in Cornwall are thought to rely on oil for central heating. Mark Clews, near Callington, said he paid 55p a litre for delivery a year ago. Prices are now climbing above £1 a litre, he said.

Guernsey and Jersey See Sharp Rises Too

Nigel Staples, who runs Guernsey Fuel and Oil Watch, said prices have been volatile and climbed above 100p a litre, up from about 75p a litre at the same time last year. He said an estimated 30,000 households in Guernsey with oil-fired boilers face a significant increase ahead of the colder months, with a full tank now costing about £1,150 against £750 last year. Jersey Consumer Council pointed residents to a site comparing petrol, diesel and heating oil costs across the island.

Brent Crude Hits $106.83 After Tanker Strikes

Behind the household bills sits a separate move in the wholesale market. Brent crude traded at $106.83 a barrel on Sept. 10, up 5.6% on the day and its highest level since May 19. The contract has risen 11.7% since Sept. 2, when it settled at $95.63. The move followed U.S. Central Command's Sept. 8 statement that its forces destroyed five Iranian oil tankers after the Islamic Revolutionary Guard Corps targeted a U.S. Navy warship with ballistic missiles twice in the preceding two days.

Government Pledges Extra Support

A UK government spokesperson said the government was providing £53m to support heating oil users and £1bn to local authorities' Crisis and Resilience Fund to help with rising fuel costs. The spokesperson added that duty on red diesel used by farmers and fishers had been cut to its lowest rate in over 20 years.

Sources: BBC News, The Defiant

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