The government is set to announce a support package for households facing sharp increases in heating oil costs after crude oil prices surged above 100 dollars a barrel following the outbreak of war between the United States, Israel and Iran. Chancellor Rachel Reeves said funding has been secured, and Prime Minister Sir Keir Starmer is expected to outline measures reportedly worth 50 million pounds at a news conference on Monday.

Unlike gas and electricity prices, heating oil costs are not capped by the energy regulator, leaving many households exposed to sudden market spikes. Some customers have reported their bills doubling, with Northern Ireland particularly affected as nearly two-thirds of homes there rely on heating oil. Smaller proportions of households in England, Wales and Scotland also depend solely on oil for central heating.

Ministers have raised concerns about potential price gouging, with the Competition and Markets Authority urgently reviewing the market. Sir Keir is expected to warn that companies exploiting the crisis could face legal action. Heating oil distributors have said they are managing significant demand and price swings while fulfilling orders as quickly as possible.

The rise in oil prices has been driven largely by disruption to supplies passing through the Strait of Hormuz. While household gas and electricity bills remain protected by a regulatory cap for now, sustained high wholesale costs could lead to further increases later in the year, prompting the government to signal it is prepared to intervene if necessary.