Since the start of the conflict in Iran and the wider region, the average price of heating oil has more than doubled in just 10 days. Along with rising fuel prices, this is now a pressing concern for many people and sectors.
I have been appalled to hear my constituents reporting that previously booked deliveries have been abruptly cancelled by their supplier, only for them to be called back and offered a delivery of the same oil, to the same address, on the same day, sometimes at twice the price. Others are being forced to order larger minimum quantities of their usual 500 litres, meaning they are suddenly facing extra bills of several hundred pounds and are clearly being held to ransom. Orders have been refused, delayed and costs have soared. This is completely unacceptable and can only be described as blatant profiteering.
Here in my East Grinstead, Uckfield and the Villages constituency, around 10% of households are reliant on heating oil rather than mains gas to provide their heating and hot water and I do know, having heard from just a fraction of them, that they are desperately struggling with the soaring price of heating oil. This is really a very worrying time for many rural households who are already struggling with wider cost of living challenges, the already high cost of energy and other rising household bills including the increasing cost of driving.
In fact, across the UK, 1.5million homes are not connected to the mains gas grid and these households are disproportionately rural, often elderly and vulnerable, and almost always without any realistic alternative on offer. In addition, unlike mains gas and electricity customers, they are not protected by the energy price cap and are already facing significant higher costs to fill up their tanks.
I want to greatly reassure you that, since the outbreak of the Iran conflict, my colleagues and I have called on the Government and will continue to call on it to take action to protect heating oil users from price gouging. After Conservative MPs wrote to the Chief Executive of the Competition and Markets Authority on the 9th of March, I am pleased they have now launched an urgent investigation into price gouging by heating oil suppliers and I do urge them to take strong action if they find evidence of these unacceptable and unprincipled practices. You can read the letter from the Shadow Secretary of State for Energy Security and Net Zero, the Rt Hon Claire Coutinho MP and other colleagues: here
On Wednesday the 11th of March, the Chancellor stated the Treasury would not offer any financial support for struggling rural households while at the same time carrying on with their proposals to crack down on wood-burning stoves, also a staple in many rural households for heating. I am aware many constituents feel this is further adding to the perception that this Labour Government does not understand or care about rural or farming communities.
On Monday, the 16th of March, the Labour Government buckled and announced it would provide £53m of support for “vulnerable” heating oil customers to be distributed by local authorities through a Crisis and Resilience Fund starting on the 1st of April. While this is, of course, welcome, it likely means only those households in receipt of benefits or on low incomes will be eligible for help with the already extortionate costs of heating oil, as a result of the latest conflicts in the Middle East.
Heating oil is a largely unregulated market, with many rural communities poorly served by a local monopoly supplier who is under no obligation to publish their prices. I would like to see the Government bring forward a mandatory price transparency scheme for heating oil suppliers, requiring them to publish their prices publicly, so that consumers can compare suppliers and regulators can monitor margins during price spikes. Rural households deserve better than to be left at the mercy of rogue suppliers and I assure you I will continue to closely monitor the situation.
To make matters worse for everyone, the Labour Government is planning the first fuel duty hike in 15 years as the conflict in the Middle East continues to push up fuel prices while their Net Zero zealot Ed Milliband shuts down the North Sea, further increasing our reliance on gas from overseas, forcing up energy bills and deindustrialising the country
You can click on this link to find out what the new Conservative Party energy policy is and to have your say in our policy renewal programme:
