The UK government has launched a £53m emergency support package to help vulnerable households struggling with soaring heating oil costs, as global energy markets remain volatile amid ongoing conflict in the Middle East.British Prime Minister Keir Starmer announced the measure at a press conference at 10 Downing Street and said the government’s top priority was to help working families cope with rising living costs caused by the crisis.
Starmer said the funding would provide “immediate support” to low-income households, particularly in rural areas that rely on heating oil for warmth.“We won’t just wait while people are in trouble,” Starmer said, adding that the government would take action against companies that might take advantage of the crisis. “If heating oil companies break the law, legal action will be taken.”
Why Heating Oil Prices Are Soaring
The intervention comes as the United States and Israel launched military strikes against Iran on February 28, escalating tensions in the region and sending oil prices soaring.The crisis has disrupted shipping in the Strait of Hormuz, one of the world’s most important oil transit routes through which about 20% of global oil supplies normally pass.Since the conflict began, crude oil prices have jumped from about $71 a barrel to more than $100, pushing up the cost of heating oil for consumers.While the UK’s energy price cap protects households using gas and electricity, regulator Ofgem does not cover heating oil that uses kerosene.Rural communities hardest hitAround 6% of UK households use heating oil, most of which are in rural areas where homes are not connected to the gas grid. Dependence is even higher in Northern Ireland, with nearly two-thirds of households relying on it.Some consumers reported prices doubling, while others claimed suppliers canceled orders and then raised prices.
Under the new financing plan:
- £27m to be donated to England
- £17m donated to Northern Ireland
- £4.6 million donated to Scotland
- £3.8m donated to Wales
However, Welsh nationalist party Plaid Cymru urged the government to extend support beyond the poorest households to include all rural households facing high heating oil and LPG costs.
UK considers further energy measures
Starmer said the government was monitoring developments closely as the current energy price cap is set to expire at the end of June.He told Sky News political editor Beth Rigby that the government was “not ruling anything out” but warned the future path for energy prices remained uncertain.The prime minister also stressed that diplomatic efforts are focused on easing tensions and restoring shipping in the Strait of Hormuz to stabilize global energy markets.
Wider regional tensions continue
The regional security situation remains fragile. Authorities in Dubai reported that a drone strike caused a fire at a fuel tank facility at Dubai International Airport, causing chaos.The United Arab Emirates, meanwhile, says it has faced multiple missile and drone attacks from Iran since the war began.However, Iran insists that the Strait of Hormuz has not been completely closed. Foreign Minister Abbas Araghchi said the waterway remained open to neutral shipping but was restricted to the United States, Israel and their allies.
