Heating oil customers in the UK whose orders were cancelled during a sharp price surge linked to the war in the Middle East are set to receive compensation of up to £350 each after an investigation by the Competition and Markets Authority. The watchdog found that some suppliers scrapped existing orders and offered replacement deliveries at much higher prices, leaving customers either paying more or going without fuel. The case matters because many rural households depend on heating oil and currently lack the consumer protections available to people using mains gas and electricity.

The CMA said about 1,700 customers were affected, and that some may have paid between £150 and £350 extra after prices peaked at 123p a litre in April, a rise of 92%. Suppliers that have agreed to act will either repay the difference paid by customers or honour the original order price if no replacement oil was bought, while the CMA is still pressing other firms and may take court action. The regulator said the broader price rises mainly reflected higher wholesale costs rather than profiteering, but it has urged UK and devolved governments to introduce stronger safeguards, including a supplier register, minimum standards and independent dispute resolution.