Highlands and Islands MSP Jamie Halcro Johnston has called for urgent help for Highlands and Islands’ residents dependent on oil-based heating.
Following the current instability in the Middle East, the price of domestic heating oil has doubled from just over 60p to over £1.20 a litre from a number of suppliers in a matter of days. The minimum standard domestic order of 500 litres will now have increased by over £300 for some customers.
This is despite increases in wholesale oil prices rising by far less. While prices are fluctuating, a barrel of Brent crude was just over $70 at the end of February and has reached a peak of just over $81.
The Highlands and Islands are still heavily dependent on heating oil, with a large number of properties not on the gas grid. Figures from 2024 show that 62% of households in the Highland region were not connected to mains gas, while the same figure was 89% in Na h-Eileanan Siar and 57% in Argyll and Bute. Orkney and Shetland have no mains gas coverage.
Jamie Halcro Johnston said:
“While this spike may be temporary, it will have worrying consequences for anyone needing to fill up their tank.
“It’s still only March and lots of families will still depend on their boiler running. Many will not be prepared to find hundreds of pounds extra even for a minimal order to keep their heating and hot water going.
“This price spike was unexpected, and the increases are wildly ahead of the wholesale cost of oil. Suppliers should be prepared to justify to consumers why the cost of deliveries has doubled.
“Gas customers will be partly protected from cost spikes through the energy price cap, but this does not apply to heating oil customers. During the last major spike at the escalation of the war in Ukraine, the UK Government at least provided a grant to heating oil customers through the Alternative Fuels Payment.
“Let’s be clear, if prices like this continue, a range of customers – particularly those like pensioners on fixed incomes - will, suddenly, not be able to heat their homes. The UK and Scottish Governments must act now to provide some help those across the Highlands and Islands who need it.”
