Consumer watchdog calls for action on heating oil market

Following continued high heating oil prices, which have outstripped crude oil prices, Consumer Focus is calling for the OFT to determine why the price of heating oil varies so much across the country.

Audrey Gallacher, Head of Energy at Consumer Focus, said: ‘Rocketing heating oil prices are causing major worry for hundreds of thousands of consumers. Clearly questions need to be asked about why prices have risen so much more than the cost of crude oil and it is welcome that the OFT are monitoring this.

‘The market for heating fuels is local, not national and in some parts of the country people are paying four times the amount for oil as elsewhere. There are signs that some companies are exploiting the situation. Consumers need to know that there is no local profiteering going on.

‘If heating oil companies are able to take advantage of rising commodity costs and other conditions to hike prices unfairly, then consumers urgently need some effective consumer protection regulations. In the long-term, homes using heating oil should also be targeted so they can take advantage of energy microgeneration schemes and the extension of the gas network to help cut their energy bills.'