Energy / MP holds ‘disappointing’ meeting with ministers over surge in heating oil price
Alistair Carmichael has also backed proposals for a price cap for those who rely on heating oil
NORTHERN Isles MP Alistair Carmichael says he was left “disappointed” after meeting government ministers on the topic of rising heating oil prices.
Carmichael this week highlighted the “surging prices for both heating oil and red diesel” in the advent of the US/Israel/Iran conflict.
It comes amid rising oil prices, with a barrel at one point reaching more than $100.
The MP said “if we could heat our homes with the warm words of ministers, then frankly we wouldn’t have a problem”.
He said he also backed Liberal Democrat proposals for a price cap for those who rely on heating oil.
One Shetland resident, Kerrie Meyer, said quotes for domestic heating oil had jumped from 95.87p per litre a week ago to 129.5p yesterday (Wednesday).
The issue is particularly prevalent in areas like Shetland and Orkney given the isles are off the gas grid.
Writing to Carmichael, Meyer said asked what measures could be instigated to protect consumers from heating oil prices and whether regulator Ofgem could be involved with heating oil prices along with “electric and gas prices price gouging of heating oil suppliers”.
Carmichael said on Wednesday that he did meet with energy and treasury ministers alongside other MPs, but was left disappointed.
He said ministers claimed to be sympathetic and were gathering data, “but I didn’t come away with any great sense of great urgency”.
The MP said the situation reminds him the last government in 2022, who were “slow out the traps” after prices rose following Russia’s invasion of Ukraine.
In 2023 the government then paid out £200 in energy support for off-grid households.
Carmichael said “we need to keep making the case” regarding the latest upsurge in cost of heating oil.
The UK Government meanwhile said protecting families from “heating oil profiteering” is top of the prime minister’s agenda as he visits Belfast today (Thursday).
Northern Ireland is another area with a high reliance on heating oil.
Prime minister Sir Keir Starmer said: “Global instability has real impacts on the lives of working people across the UK, and I know families in Northern Ireland are worried about what the war in the Middle East could mean for their finances – especially given so many households rely on heating oil to heat their homes.
“Let me be clear: we will not tolerate profiteering or unfair practices. If companies fleece customers or rip them off, we will not hesitate to step in, and that includes on regulation.”
The Competition and Markets Authority (CMA) also said it will be engaging with heating oil suppliers to gather evidence and consider whether retailers’ practices raise consumer protection law concerns.
It said an initial review of complaints has identified two main issues, which the CMA will be probing further:
- Existing orders for heating oil being cancelled, and customers then being offered new quotes at significantly increased prices price
- Increases for automated deliveries (triggered when the fuel in a tank drops to a certain level)
CMA chief executive Sarah Cardell said: “We know many households are worried about rising prices as global events push up wholesale oil costs. It’s inevitable that some prices will rise, but they should reflect genuine cost pressures.
“We’ve heard troubling reports from heating oil customers about cancelled orders and sudden price increases – and are moving quickly to get to the bottom of these concerns. As always, we stand by consumers and will make sure they are treated fairly.”
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