As summer comes to an end, many households that rely on fuel oil for heating are facing a tough decision. The price of heating oil has nearly doubled in the past year, following increased tensions between the US and Iran. This has left families unsure whether to buy oil now for the winter or wait, hoping prices might drop—though there's always the risk they could rise again.
John Craggs, 73, from Wigtoft near Boston in Lincolnshire, is preparing to fill his heating oil tank for the winter. He plans to keep an eye on the price and buy oil if it dips slightly. However, he and his wife, Libby, 80, are planning to cut back on heating use to reduce costs. They will only use the heating in three rooms, keeping it on for about five hours a day, and only up to 17 degrees Celsius.
Heating oil is used by around 1.5 million UK households, mostly in rural areas. In some parts of Lincolnshire, such as Wainfleet All Saints, Wragby, Roughton, and Ludford, more than 40% of homes rely on this fuel. Unlike those who use gas or electricity, heating oil users are not protected by the energy price cap, making them more vulnerable to price spikes. They also typically have to pay for fuel in advance, with domestic oil tanks holding between 1,000 and 2,000 litres.
The average price of heating oil, as of the latest data, is 97.05p per litre, according to the comparison site boilerjuice.com. This is up 85% since September 2025, when the price was 52.8p per litre. Although it has dropped from a peak of 134p in March, prices have risen again in recent weeks due to renewed conflict between the US and Iran. A family needing to fill a 1,000-litre tank could now be looking at a bill of over £970.
In March, the government announced a £53 million support package to assist low-income families using heating oil, after prices surged due to the Middle East conflict. Local authorities distribute the funding, each setting their own eligibility criteria. John Craggs tried to access this support but found he did not qualify.
The charity National Energy Action is pushing for the energy price cap, which currently covers gas and electricity, to be extended to include heating oil. It is also urging the government to provide more support for affected households. Matt Copeland, the group’s interim director of policy, said the current support measures did not account for how long high prices might last. He called for more funding in the upcoming budget and for broader eligibility criteria to help low-income families not on benefits.
A spokesperson for the Department of Energy Security and Net Zero said, "Energy is an everyday essential and needs to be affordable for everyone. We have cut VAT on electricity bills to give families breathing space, following the reduction of £150 in costs earlier this year. We will continue to look at what more we can do to protect households."
Heating Oil Prices Rise as Families Face Tough Winter Decisions
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