Rural households face severe heating oil cost increases as winter approaches

Thousands of households across the UK that depend on heating oil are facing a significant financial squeeze this winter, driven by global tensions that have pushed fuel prices to new highs. A senior Devon County Council member has warned that the sharp rise in costs is creating considerable anxiety for families already struggling with the cost of living. The situation has been exacerbated by recent conflicts in Iran, which have driven up the price of heating oil from approximately 60p per litre to around 97p per litre, according to data from price comparison website Boiler Juice.

Cheryl Cottle-Hunkin, the cabinet member for rural affairs and broadband at Devon County Council, described the price increases as severe shocks rather than minor adjustments. A fifth-generation farmer from near Great Torrington, she noted that the rising costs are also impacting agricultural businesses. She explained that higher fuel prices affect the agricultural vehicles used daily on farms, with larger operations running heavy machinery facing even greater challenges. Cottle-Hunkin highlighted that 41,000 households in Devon rely on heating oil as their primary source of heating, warning that many of these families are vulnerable to sudden price spikes. She emphasised that unlike other energy sources, there is no equivalent Ofgem price cap for heating oil, meaning prices can double overnight.

As colder weather approaches, Cottle-Hunkin stated that many households may face difficult decisions regarding how to heat their homes. She estimated that filling a tank with oil could cost an additional £500 compared to previous expectations, representing hundreds of pounds that families must find unexpectedly. The Liberal Democrat councillor urged anyone facing financial hardship to seek assistance through Devon’s Crisis and Resilience Fund, which is available via local district councils. This fund supports low-income households experiencing sudden financial shocks, such as unexpected bills or difficulty paying for essentials including food, energy, water, housing costs, and heating oil. The scheme, delivered through Devon’s district councils and Citizens Advice Devon, also provides wider support and advice to help individuals improve their financial resilience and avoid future crises.

In Cornwall, more than 34,500 households are thought to rely on oil for central heating. Mark Clews, a resident near Callington, said he had delayed filling his tank this summer while arranging a replacement. He noted that prices have now climbed above £1 per litre, a stark contrast to the 55p per litre he paid for delivery at the same time last year. Clews acknowledged that his family was fortunate to have a large tank, which provided some flexibility over when to purchase more fuel. However, he observed that many other households would be in a more difficult position. His family has adopted money-saving advice from consumer champion Martin Lewis, using electric blankets on beds and sofas and only turning on heating when absolutely necessary.

Similar concerns are being raised in the Channel Islands. Nigel Staples, who runs Guernsey Fuel and Oil Watch, reported that heating oil prices have been very volatile in recent months and have now climbed above 100p per litre. He noted that prices in Guernsey tend to be about 15p per litre higher than in the UK. Staples stated that a litre of heating oil cost about 75p at the same time last year, meaning an estimated 30,000 households in Guernsey with oil-fired boilers are facing a significant increase ahead of the colder months. He calculated that a full tank, which cost around £750 last year, is now expected to cost approximately £1,150. In Jersey, the Consumer Council has encouraged householders to use its website to compare the cost of petrol, diesel, and home heating oil across the island, suggesting that simple comparisons could help consumers retain more money.

A UK Government spokesperson stated that the government is taking direct and wide-ranging action to protect people and industry from the rising cost of fuel. This includes providing £53m to support those using heating oil and allocating £1bn to local authorities in the Crisis and Resilience Fund. The spokesperson also noted that the government is directly supporting farmers and the fishing industry by reducing duty on red diesel fuel to its lowest rate in over 20 years.