Heating oil customers in Northern Ireland who had orders cancelled when prices surged earlier this year are to receive compensation, the Competition and Markets Authority (CMA) has announced.

The intervention follows concerns that some suppliers breached customer contracts by cancelling orders as global oil prices rose sharply after conflict broke out in the Middle East. Around 800 affected customers have already been notified, and eligible households do not need to make a claim or contact the CMA to enter the compensation scheme.

Customers who had their original orders cancelled and then paid more for replacement oil will receive a payment covering the difference between the original and replacement orders. The CMA estimates those affected may have paid between £150 and £350 more because heating oil prices had risen sharply.

Those who did not buy replacement oil will instead have their original order honoured at the price they initially agreed to pay. Customers seeking reimbursement for a more expensive replacement purchase will need to provide evidence, such as a receipt and delivery note.

Northern Ireland experienced a sharp rise in heating oil costs during the period. The average retail price rose from around 57 pence per litre in February 2026 to 97p in March, an increase of about 70 percent in one month, according to CMA figures. Despite that rise, Northern Ireland remained the cheapest of the four UK nations for heating oil in March, at 97p per litre compared with 103p in England, 106p in Wales and 113p in Scotland.

Across the UK, consumers paid around £200 more for a typical 500-litre order in March 2026 than in February, with the average cost increasing from approximately £320 to £520, a rise of 64 percent. The CMA said about £170 of that increase reflected higher wholesale costs.

UK average heating oil prices increased from 64p per litre in February to 104p in March and peaked at 123p in April, 92 percent above the February level. Prices declined by 15 percent in May to an average of 104p per litre, though they remained above pre-conflict levels. Around 1.5 million UK households rely on kerosene heating oil for warmth and hot water.

Sarah Cardell, Chief Executive of the CMA, said heating oil is a necessity, not a luxury, and that during the price spikes hundreds of customers were left out of pocket or without fuel after their orders were cancelled. She said the CMA pressed suppliers to put things right, and they have agreed to compensate those affected by issuing compensation or honouring their original contracts.

The CMA said it will continue working with suppliers to finalise compensation arrangements and ensure affected customers receive the payments they are due. Further information is available on the CMA’s heating oil consumer protection case page.