WIREDGOV

Hundreds set to receive compensation after their orders were cancelled following the conflict in the Middle East.

The Competition and Markets Authority (CMA) has intervened over concerns that some suppliers cancelled orders when heating oil prices surged, which may have been a breach of contract.

The CMA has secured compensation from suppliers after finding that hundreds of customers who ordered through an intermediary site were impacted.

While customers received refunds for their original orders following cancellations, many had to buy replacement oil at significantly higher prices, while others went without the essential fuel. The CMA estimates customers may have paid between £150 and £350 more for replacement heating oil.

Following CMA intervention, customers whose suppliers have joined the compensation scheme, and who paid more for replacement oil, will receive a payment covering the difference between the original and replacement order. Customers who did not purchase replacement oil will have their original order honoured at the agreed price.

Eligible customers do not need to do anything and either have been, or will be, contacted directly – around 800 customers have already been notified. Those seeking compensation for replacement purchases will need to provide evidence of their replacement order, such as a receipt and delivery note.

The CMA will continue to work with suppliers to finalise compensation arrangements and ensure affected customers receive the payments they are due.

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.

For more information, visit the heating oil consumer case page.

CMA statistics

Figure 1: The price of heating oil per litre from February 2026 to March 2026 by nation

• Around 1.5 million households in the UK rely on kerosene (heating oil) to warm their homes and provide hot water.
• Consumers paid around £200 more for a typical 500-litre order in March 2026 than they would have in February 2026 – increasing from around £320 to £520 (64%). Around £170 of that increase reflected higher wholesale costs.
• From February to March 2026, average prices for heating oil increased by 64% (41ppl) from 64ppl to 104ppl and peaked at 123ppl in April 2026 – a 92% increase from February.
• Average prices declined by 15% in May 2026 to 104ppl – although they remain elevated compared to levels before conflict in the Middle East began.