Heating bills double for 1.7m UK households as Iran war sends costs soaring

 Around 1.7 million UK households who rely on heating oil are facing a dramatic surge in heating costs with some bills more than doubling in the weeks following the outbreak of the Iran war. The spike has been driven by sharp increases in the price of heating oil, a fuel relied upon mainly by homes in rural areas. It is the primary heating source for two-thirds of households in Northern Ireland.

The spike in prices follows disruption to global energy supplies linked to the war. About 40% of Europe's jet fuel came from the Middle East in 2025 passing through the Strait of Hormuz.

The Strait of Hormuz has been effectively been blocked to most international shipping in retaliation for joint US and Israeli airstrikes that began on February 28 with only a limited handful of vessels bringing Iranian oil to countries like India and China.

Unlike gas and electricity customers, those who heat their homes with oil are not covered by the energy price cap in Great Britain, meaning they are exposed to more immediate energy price hikes. Many families will need to pay a large upfront sum to refill their tanks just to keep their homes heated and have hot water.

William Ellis, 73, from Retford, Nottinghamshire, was shocked when he recently checked the cost of refilling his tank. Just a few weeks earlier, 500 litres of heating oil had cost him £284. When he requested a new quote in early March, the price had jumped to £735, marking an increase of £451.

Faced with such a steep rise, he and his wife have been using their heating as little as possible and turning to a wood burner to stay warm, This is Money reports.

The Competition and Markets Authority launched an investigation into the heating oil market last week and ministers promised to take action if any evidence of unfair pricing or profiteering is found.

In a press conference on Monday, Sir Keir Starmer announced the Government will be offering "immediate support for vulnerable heating oil customers, proving £53m for those households that are most exposed."

The Treasury later confirmed that over £50 million will be made available to help low-income households with heating oil costs.

It wrote: "The Chancellor is announcing over £50 million of targeted financial support, helping low-income households in rural communities who have no choice but to top up their tanks at a time when prices have risen so significantly.

"In England, funding will be distributed by local authorities via the Crisis and Resilience Fund (CRF), which comes into effect from 1 April, targeted areas with higher rates of oil heating.

"This is a particular issue in Northern Ireland, where a greater proportion of homes rely on heating oil, and we have allocated £17 million to support them. England will receive £27 million, Scotland £4.6 million and Wales £3.8 million.

"This funding has been allocated based on census data, reflecting where the greatest need is, and it will be allocated directly to the devolved governments, with the expectation that it will be used to support vulnerable households."

Chancellor Rachel Reeves also said: "Heating oil prices have spiked sharply, and I know that for families in rural communities that is a real and urgent problem.

"That's why we're putting over £50 million of support to help the people who need it most, including funding for the Northern Ireland Executive to deliver support in Northern Ireland where this issue hits hardest."