'Heating oil suppliers are holding us to ransom'

A man has told the BBC that people who rely on heating oil are being "held to ransom" by suppliers.

Keith Bainbridge, from Virginia Water in Surrey, said the price of his heating oil had more than doubled following the outbreak of war in the Middle East.

"It is scandalous," he added. "In times of crisis you can expect some increases, but for heating oil this has been exorbitant. We're being taken for a ride."

The UK and Ireland Fuel Distributors Association said its members were doing "everything they can" to support oil-heated homes in a volatile market.

It added that shifts in wholesale prices were reflected quickly in customer prices because distributors bought almost daily.

"We have also seen a very large and unexpected increase in demand," the trade association said.

Bainbridge told the BBC he was avoiding using his heating oil and would not buy any more.

"I don't know how long this is going to go on for," he said.

'We're already struggling'

Jason Barge told BBC Radio Kent recent "ridiculous" price increases were affecting his home and business, which both run on heating oil.

"We've got to budget now for an extra nearly £1,000 a tank," he said. "It's quite a lot of money to find."

Barge added the increased costs were putting "real pressure" on his mechanics - the Old Station Garage - in Horsmonden.

"We're already struggling as it is. The cost of help. The cost of electricity. Everything's all going up," he said.

Some 1.5 million homes in the UK are heated with oil rather than gas, according to the Competition and Markets Authority.

The government body said it had received complaints that heating oil suppliers were cancelling orders and then offering customers new quotes at significantly increased prices.

It had also been told of price increases for automated deliveries, which are triggered when fuel tank levels drop.

John Milne, the MP for Horsham in West Sussex, told the BBC heating oil users tended to be older, more vulnerable and living in rural areas.

He urged the government to remove value added tax (VAT) on the fuel in the short term.

But Milne added that something similar to the Ofgem price cap - which limits the maximum amount energy suppliers can charge - was needed to "control price shocks in the future".

"The price gouging we are seeing is totally unacceptable," said Chancellor of the Exchequer Rachel Reeves.

"Whether it is petrol at the pumps or heating oil, there is no excuse for any business to use this as an opportunity to rip off customers."