Households to receive up to £350 compensation after heating oil suppliers cancel orders

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Around 800 affected customers have already been contacted about the scheme.

Hundreds of heating oil customers are set to receive up to £350 in compensation after suppliers cancelled their orders during this year's price surge.

The Competition and Markets Authority (CMA) has stepped in to secure payments for customers who were left out of pocket.

The regulator found that customers who ordered heating oil through an intermediary website were affected when suppliers cancelled agreed orders as prices rose sharply following the conflict in the Middle East.

Customers received refunds for their cancelled orders, but many then had to buy replacement heating oil at much higher prices. Others were left without the fuel altogether.

The CMA estimates that customers may have paid between £150 and £350 more for replacement heating oil and raised concerns that the cancellations may have breached their contracts.

Under the compensation scheme secured by the CMA, customers who paid more for replacement oil will receive the difference between the price of their original order and the amount they eventually had to pay.

Customers who did not buy replacement oil will instead have their original order honoured at the price they initially agreed.

Eligible households do not need to do anything to start the process, as they either have been or will be contacted directly.

However, customers seeking compensation for replacement oil will need to provide evidence of the purchase, such as a receipt and delivery note.

The CMA said it will continue working with suppliers to complete the compensation arrangements and make sure affected customers receive what they are owed. Suppliers under review have agreed to take part in the scheme.

Sarah Cardell, Chief Executive of the CMA, said: "Heating oil isn't a luxury, it's a necessity that many people rely on to have hot water and warm homes."

"During the price spikes earlier this year, hundreds of customers were left out of pocket or without fuel after their orders were cancelled. That's why we've pressed suppliers to put it right," she added.

"They've now agreed to compensate those affected by issuing compensation or honouring their original contracts."

The intervention underscores the regulator's concern that vulnerable households dependent on heating oil were disproportionately harmed by the cancellations.

Roughly 1.5 million homes across the UK use kerosene to heat their properties and provide hot water, making disruptions to supply a serious welfare issue.

A typical 500-litre order cost around £320 in February 2026 but rose to approximately £520 by March, a jump of 64 per cent. Higher wholesale costs accounted for roughly £170 of that increase.

Average heating oil prices climbed sharply during the spring, rising from 64 pence per litre in February to 104 pence per litre in March.

Prices then peaked at 123 pence per litre in April, meaning they had risen by 92 per cent in just two months.

By May, the average price had fallen by 15 per cent to 104 pence per litre, although costs remained well above the levels seen before the conflict in the Middle East began.

Scotland recorded the biggest regional increase, with average prices jumping by 44 pence per litre to reach 113 pence per litre in March.

Prices in Wales rose by 42 pence per litre over the same period, while England and Northern Ireland recorded increases of 38 pence and 39 pence per litre respectively.