Heating oil customers to receive compensation for cancelled orders
Around 1,700 heating oil customers will receive compensation for orders that were cancelled in the wake of the conflict in the Middle East, the Competition and Markets Authority (CMA) has ordered.
The conflict caused a surge in the price of oil when the Strait of Hormuz was closed, and some customers saw lower-priced orders cancelled and re-offered at a significantly higher price. At its peak, it was 134.2 pence per litre, up from 60.46 pence - an increase of nearly 122%.
While some customers received refunds, they were still obliged to pay more for their heating oil or go without fuel altogether. Those who did pay more will receive a payment covering the difference, while those who didn’t will have their orders honoured at the previously agreed price.
While most heating oil suppliers have agreed to the compensation, some are holding out. The CMA is in talks with those suppliers but is prepared to take enforcement action against them in court.
