The UK government has unveiled a £53 million emergency support package to help vulnerable households struggling with soaring heating oil costs, as global energy markets remain volatile amid the ongoing conflict in the Middle East.Prime Minister Keir Starmer announced the measure during a press conference at 10 Downing Street, saying the government’s immediate priority is to help working families manage the rising cost of living triggered by the crisis.
Starmer said the funding would provide “immediate support” to low-income households, particularly in rural areas that rely on heating oil to warm their homes.“We won’t just wait while people struggle,” Starmer said, adding that the government would act against companies that may be exploiting the crisis. “If heating oil companies are breaking the law, there will be legal action.”
Why heating oil prices are surging
The intervention comes as oil prices surged following military strikes by the United States and Israel on Iran on February 28, escalating tensions in the region.The crisis has disrupted shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes through which around 20 per cent of global oil supplies normally pass.Since the conflict began, crude oil prices have jumped from roughly USD 71 per barrel to over USD 100, pushing up heating oil costs for consumers.Although the UK’s energy price cap protects households using mains gas and electricity, heating oil — which uses kerosene, is not covered by the regulator Ofgem.Rural communities hit hardestHeating oil is used by about 6 per cent of UK households, mostly in rural regions where homes are not connected to the gas grid. The reliance is even higher in Northern Ireland, where nearly two-thirds of households depend on it.Some consumers have reported prices doubling, while others claim suppliers are cancelling orders and then raising prices.
Under the new funding plan:
- £27 million will go to England
- £17 million to Northern Ireland
- £4.6 million to Scotland
- £3.8 million to Wales
However, the Welsh nationalist party Plaid Cymru has urged the government to expand support beyond the poorest households to include all rural families facing high heating oil and LPG costs.
UK weighing further energy measures
Starmer said the government is monitoring the situation closely as the current energy price cap expires at the end of June.He told Sky News political editor Beth Rigby that the government is “not ruling anything out” but cautioned that the future trajectory of energy prices remains uncertain.The prime minister also stressed that diplomatic efforts are focused on de-escalating tensions and restoring shipping through the Strait of Hormuz to stabilise global energy markets.
Wider regional tensions continue
The regional security situation remains fragile. Authorities in Dubai reported disruptions at Dubai International Airport after a drone strike caused a fire at a fuel tank facility.Meanwhile, the United Arab Emirates said it had faced multiple missile and drone attacks from Iran since the start of the war.Iran, however, insists the Strait of Hormuz has not been fully closed. Foreign minister Abbas Araghchi said the waterway remains open to neutral shipping but is restricted for the US, Israel and their allies.
