The UK government has unveiled a £53 million emergency aid package to help vulnerable households struggling with the rising costs of heating oil, as global energy markets remain volatile amid the ongoing conflict in the Middle East.Prime Minister Keir Starmer announced the measure during a press conference at 10 Downing Street, saying the government’s immediate priority is to help working families manage the rising costs of living caused by the crisis.
Starmer said the funding would provide “immediate assistance” to low-income households, especially in rural areas that rely on heating oil to heat their homes.“We will not wait for people to fight,” Starmer said. He said the government will take action against companies that may take advantage of the crisis. “If heating oil companies are breaking the law, there will be legal action.”
Why are heating oil prices rising?
The intervention comes as oil prices surged following military strikes by the United States and Israel on Iran on February 28, which heightened tensions in the region.The crisis has disrupted shipping through the Strait of Hormuz, one of the world’s most important oil transit routes, through which about 20 percent of the global oil supply typically passes.Since the conflict began, crude oil prices have risen from about US$71 per barrel to more than US$100, increasing the cost of heating oil to consumers.Although the UK’s energy price cap protects homes that use mains gas and electricity, heating oil – which uses kerosene – is not covered by regulator Ofgem.Rural communities were most affectedAbout 6 percent of UK homes use heating oil, mostly in rural areas where homes are not connected to the gas grid. Dependency is even higher in Northern Ireland, where almost two-thirds of households depend on it.Some consumers have reported prices doubling, while others claim suppliers are canceling orders and then raising prices.
Under the new funding scheme:
- £27 million will go to England
- £17 million to Northern Ireland
- Scotland £4.6 million
- Wales £3.8 million
However, Welsh nationalist party plaid Cymru has urged the government to expand support beyond the poorest households to include all rural households facing high heating oil and LPG costs.
UK considering additional energy measures
Starmer said the government was monitoring the situation closely as the current energy price cap expires at the end of June.He told Sky News political editor Beth Rigby that the government was “not ruling out any possibility” but cautioned that the future of energy prices remains uncertain.The Prime Minister also stressed that diplomatic efforts are focused on reducing tensions and restoring shipping through the Strait of Hormuz to stabilize global energy markets.
Widespread regional tensions continue
The regional security situation remains critical. Authorities in Dubai reported disruption at Dubai International Airport after a fire broke out at a fuel tank facility due to a drone attack.Meanwhile, the United Arab Emirates said it had faced multiple missile and drone attacks from Iran since the beginning of the war.However, Iran insists that the Strait of Hormuz has not been completely closed. Foreign Minister Abbas Araghchi said the waterway is open to neutral shipping but restricted to the US, Israel and their allies.