The Competition and Markets Authority (CMA) concluded that the domestic heating oil market is generally competitive and found no evidence that the industry materially benefited from the significant price increases experienced during the period of energy market disruption.
The report identified a relatively small number of issues, which have now been addressed. UKIFDA and its members remain committed to maintaining high standards of customer service, transparency and consumer protection across the sector.
Around 1.7 million households across the UK rely on heating oil to heat their homes. Domestic heating oil prices are heavily influenced by international wholesale energy markets, particularly the market for kerosene-based fuels, rather than by local distributor margins.
Heating oil distributors typically have limited storage capacity and purchase product at prevailing wholesale market prices on a frequent basis. As a result, distributors are largely price takers in an internationally traded market.
We recognise the impact that sustained high wholesale prices continue to have on many households. The industry remains committed to supporting customers, working with governments across the UK and Ireland, and promoting awareness of available support schemes, independent advice and practical measures that can help consumers manage energy costs.
We welcome continued dialogue with Government and other stakeholders to ensure that any future measures are evidence-based, proportionate and deliver tangible benefits for consumers.
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Read the government’s response here.
13th October 2026
