Expand The Energy Price Cap to Cover Heating Oil

The Welsh Liberal Democrats have called on the UK Conservative Government to instruct Ofgem to extend the energy price cap to cover heating oil.

Off-the-grid households throughout Wales that rely on heating oil instead of gas or electric heating are seeing rapid and astronomical rises, but the energy price cap currently doesn’t apply for them.

In the past fortnight, heating oil prices have risen from an already high 66.74 pence per litre to 148.25 pence per litre, driven in part by the conflict in Ukraine.  

1.5 million households in the UK are powered by oil, while rural parts of Mid, West and North Wales are particularly vulnerable to the problem. In Ceredigion over 33 per cent of homes rely on oil heating and a previous analysis by the Welsh Liberal Democrats indicates Ceredigion will see the highest increase in fuel bills in the mainland UK. The picture is similar in other parts of Wales including Powys, Monmouthshire, Pembrokeshire and Gwynedd.

Commenting Welsh Liberal Democrat Leader Jane Dodds, who represents the rural Mid & West Wales Region in the Senedd said:

“As a rural MS, I am all too aware of the many day-to-day costs that my constituents must face compared to their urban counterparts. It is indefensible that they are now facing even steeper bills as the result of being forgotten about by a London-centric Conservative Party yet again.

“I would urge the Government to urgently reconsider its position and to put in place financial protection for consumers of heating oil, equivalent to the existing energy price cap on gas and electricity.

“Beyond extending the energy price cap to heating oil, the Government should also scrap the 5% VAT on energy bills and double the Warm Homes Discount by introducing a one-off Robin Hood tax on the record profits of oil and gas producers and traders. It is important to remember that oil and gas providers are not struggling like normal people are, both Shell and BP have recently posted record-breaking profits.

“Many of my constituents are already being forced to make the choice between heating or eating, the Government must take action to protect them.