Around 1,700 UK heating oil customers whose orders were cancelled during the 2026 price spike will receive between 150 and 350 pounds in compensation, the Competition and Markets Authority has confirmed. Affected customers are contacted directly and need take no action.
TL;DR · LAST REVIEWED 28 August 2026
- Around 1,700 UK heating oil customers whose orders were cancelled during the 2026 price spike will receive between 150 and 350 pounds in compensation, the Competition and Markets Authority has confirmed. Affected customers are contacted directly and need take no action.
KEY FACTS
- The Competition and Markets Authority (CMA) has secured compensation from heating oil suppliers after finding customers who ordered through an intermediary site had orders cancelled during the 2026 Middle East conflict.
- Around 1,700 households were affected by possible breaches of contract.
- The CMA estimates affected customers paid between 150 and 350 pounds more for replacement heating oil.
- Customers who paid more for replacement oil receive a payment covering the difference; customers who did not rebuy will have their original order honoured at the agreed price.
- Affected customers are contacted directly by suppliers and do not need to take any action at this stage.
- Heating oil prices peaked at roughly 123 to 134 pence per litre in April 2026, about 92 percent higher than February, after the Strait of Hormuz was disrupted.
What the CMA has ordered and who qualifies
Around 1,700 UK heating oil customers whose orders were cancelled during the 2026 price spike will receive compensation, the Competition and Markets Authority has confirmed. The payments follow an investigation into possible breaches of contract by suppliers who sold through an intermediary website.
The Competition and Markets Authority (CMA) secured compensation from heating oil suppliers after finding that customers who ordered through an intermediary site had their orders cancelled during the 2026 Middle East conflict. Around 1,700 households were affected by possible breaches of contract. The CMA said it was prepared to take enforcement action in court against suppliers that initially held out.
How much customers will get and how payment works
The CMA estimates affected customers paid between 150 and 350 pounds more for replacement heating oil. Payments are designed to cover that difference, or to honour the original order at the agreed price for those who did not rebuy.
Customers who paid more for replacement oil receive a payment covering the difference. Customers who did not rebuy will have their original order honoured at the agreed price. Affected customers are contacted directly by suppliers and do not need to take any action at this stage.
Why heating oil prices spiked in 2026
Heating oil prices peaked at roughly 123 to 134 pence per litre in April 2026, about 92 percent higher than in February, after the Strait of Hormuz was disrupted during the Middle East conflict.
The disruption to a key shipping route caused a sharp rise in wholesale costs, which was passed on to consumers. About 1.5 million UK households rely on heating oil, mostly in rural and off-grid areas, with a high concentration in Northern Ireland. Unlike mains gas and electricity, heating oil is bought in large volumes, so a single order can cost 500 pounds or more.
Why off-grid households are less protected
The CMA found the market is generally competitive and suppliers did not profit materially, but off-grid consumers are less protected than grid-connected ones. This is because heating oil is not covered by the same regulatory framework as mains energy supplies.
Households that rely on heating oil must arrange their own deliveries and are exposed to price volatility and supply disruptions without the same consumer safeguards. The CMA noted that while competition exists, the lack of regulation leaves customers more vulnerable when things go wrong.
What the CMA wants to change next
The CMA has recommended a new proportionate regulatory regime covering price transparency, how cancellations are handled, and support for vulnerable consumers. This follows the investigation into the 2026 cancellations and price spike.
The proposed regime would aim to give off-grid households clearer information and stronger protections. It would address how suppliers communicate price changes and handle order cancellations, and would require support for vulnerable customers who may struggle to secure heating oil at short notice.
Do I need to do anything to claim heating oil compensation?
No. Affected customers are contacted directly by their supplier and do not need to take any action at this stage. The CMA has confirmed that payments and order honouring are being handled by the suppliers involved.
How much compensation will affected customers receive?
The CMA estimates affected customers paid between 150 and 350 pounds more for replacement heating oil. Customers who paid more will receive a payment covering the difference. Customers who did not rebuy will have their original order honoured at the agreed price.
Who is eligible for the CMA heating oil compensation?
Around 1,700 UK households whose heating oil orders were cancelled during the 2026 price spike are eligible. These customers placed orders through an intermediary site and had those orders cancelled, which the CMA found to be a possible breach of contract.
Why did heating oil prices rise so sharply in 2026?
Heating oil prices peaked at roughly 123 to 134 pence per litre in April 2026, about 92 percent higher than in February, after the Strait of Hormuz was disrupted during the Middle East conflict. This caused a sharp rise in wholesale costs.
Will heating oil be better regulated in future?
The CMA has recommended a new proportionate regulatory regime covering price transparency, how cancellations are handled, and support for vulnerable consumers. Any changes would require government action to implement.
This article is for general information and is not financial or legal advice. Eligibility and payments are determined by the CMA and individual suppliers. Verify your position with your supplier or the CMA.
DISCLAIMER
This article is for general information and is not financial or legal advice. Eligibility and payments are determined by the CMA and individual suppliers. Verify your position with your supplier or the CMA.
Do I need to do anything to claim heating oil compensation?
See guidance above and the primary sources listed.
How much compensation will affected customers receive?
See guidance above and the primary sources listed.
Who is eligible for the CMA heating oil compensation?
See guidance above and the primary sources listed.
Why did heating oil prices rise so sharply in 2026?
See guidance above and the primary sources listed.
Will heating oil be better regulated in future?
See guidance above and the primary sources listed.
SOURCES
- CMA secures compensation for heating oil customers (GOV.UK) – accessed 28 August 2026
- UK heating oil households need stronger protections, CMA (GOV.UK) – accessed 15 July 2026
