On 20 March 2026, the Competition and Markets Authority launched a market study into the supply of domestic heating oil in the United Kingdom under the Enterprise Act 2002. The initiative reflects concerns that this essential energy market may not be working effectively for consumers, particularly in light of recent price volatility.
Heating oil is a key energy source for around 1.5 million UK households, with especially high reliance in Northern Ireland. Many depend on it for both heating and hot water, making affordability critical. Recent global oil price spikes—linked to geopolitical tensions in the Middle East—have led to sharp increases in retail prices. At the same time, the CMA has received complaints about supply conditions, prompting closer scrutiny of how the market operates.
The study builds on earlier work by the Office of Fair Trading and complements ongoing CMA enforcement efforts in consumer protection. However, its primary focus is broader: assessing whether structural or behavioural features of the market may be weakening competition or harming consumers, particularly during periods of high price volatility.
Unlike other energy sectors, heating oil is not subject to economic regulation by bodies such as Ofgem. Although the market includes over 150 suppliers, it exhibits notable gaps in consumer protection. These include the absence of a supplier of last resort, limited safeguards for vulnerable consumers, no formal constraints on pricing practices, and a lack of mandatory dispute resolution mechanisms. There are also no obligations comparable to priority service registers or requirements to provide energy efficiency advice.
The CMA will examine several key issues, including how global oil price increases affect retail pricing and margins, whether competition effectively constrains price rises, and the level of price transparency available to consumers. It will also assess supply-side constraints, such as stock availability, and investigate potential poor conduct by suppliers.
The study covers the entire UK but acknowledges regional differences, particularly in Northern Ireland. Possible outcomes range from no further action to recommendations for regulatory reform, enforcement measures, or a full market investigation.
Although market studies can last up to 12 months, the CMA aims to complete this one within three months, reflecting the urgency of consumer concerns. Stakeholders are invited to submit views by 8 April 2026.