Heating Oil Prices Double as UK Government Plans Support Measures

Heating oil costs for UK households have risen sharply in March 2026, prompting government officials to announce plans for targeted support measures.

Prices for home heating oil increased from around 60 pence per litre to over £1.23 per litre in some areas, according to recent reports. This surge has affected households across the UK, with especially high usage rates in Northern Ireland and parts of Scotland.

Approximately 1.5 million households in the UK rely on heating oil for their energy needs. These households are not protected by Ofgem’s energy price cap, leaving them exposed to market fluctuations.

In Northern Ireland, heating oil is used by about 62.5% of homes, compared to just over 5% across the UK as a whole. In Scotland, prices rose from about 67.92 pence per litre at the end of February to 147 pence per litre by early March.

What the numbers show

• Heating oil prices increased from 60p to over £1.23 per litre in March 2026
• 1.5 million UK households rely on heating oil for heating
• 62.5% of homes in Northern Ireland use heating oil, compared to just over 5% UK-wide

Prime Minister Keir Starmer said he would address company practices related to heating oil pricing and stated that prices must be fair, transparent, and justifiable. The government has indicated that it is preparing to introduce a support plan for households impacted by the recent price increases.

Chancellor Rachel Reeves stated that households using heating oil face unique challenges and announced plans to hold meetings to develop an action plan. Reeves also said she had identified funding to assist those affected by the rising costs.

The government’s support plan is being developed in response to the sharp increase in heating oil prices following the outbreak of conflict involving the US, Israel, and Iran. Details of the support measures are expected to be released as planning progresses.

Households that rely on heating oil remain outside the scope of Ofgem’s energy price cap, making them more susceptible to sudden changes in fuel costs. The government’s stated intention is to provide targeted assistance for these households as prices remain elevated.

* This article is based on publicly available information at the time of writing.