The Competition and Markets Authority (CMA) has secured compensation for heating oil customers whose orders were cancelled when prices spiked earlier this year, amid market turbulence linked to the conflict in the Middle East.

Following a consumer protection review, the CMA found that hundreds of people who placed orders through an intermediary site were affected after some suppliers cancelled purchases during the surge, which may have breached contract terms. While refunds were issued for the original orders, many customers had to buy replacement oil at higher prices, and others went without essential fuel.

Under a compensation scheme now agreed with the suppliers under review, customers who paid more for a replacement delivery will receive the difference between their original order and the higher-priced purchase. Those who did not secure replacement oil will have their initial orders fulfilled at the agreed price.

The watchdog estimates that affected households typically paid between £150 and £350 more for replacement heating oil. In total, thousands of pounds are expected to be returned to consumers.

Eligible customers do not need to take any action at this stage. They will be contacted directly by participating suppliers, with around 800 people already notified. Those seeking reimbursement for a replacement purchase will be asked to provide evidence such as a receipt and delivery note. The CMA said it will continue working with suppliers to finalise the arrangements and ensure payments reach all those entitled to them.

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."

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

Further details are available on the CMA's heating oil consumer case page: www.gov.uk/cma-cases/heating-oil-review-consumer-protection-enforcement-case

CMA data show how sharply prices rose across the UK between February and March 2026. Average retail prices climbed from 69ppl to 113ppl in Scotland (+44ppl), 64ppl to 106ppl in Wales (+42ppl), 65ppl to 103ppl in England (+38ppl), and 57ppl to 97ppl in Northern Ireland (+39ppl).

Around 1.5 million UK households rely on kerosene (heating oil). A typical 500-litre order cost about £320 in February 2026 but rose to roughly £520 in March (up 64%), with around £170 of that increase driven by higher wholesale costs. Across the same period, average prices jumped from 64ppl to 104ppl (up 41ppl or 64%) and peaked at 123ppl in April 2026, a 92% increase on February. Prices eased by 15% in May to around 104ppl but remain elevated compared with pre-conflict levels.