Ministers last night warned heating oil suppliers against exploiting the Middle East crisis after prices doubled in a week.
Rachel Reeves said she was ready to protect 1.5million households relying on heating oil, who are primarily in rural, off-grid areas and are not covered by the Government’s price cap.
Prices have soared since the US and Israel launched strikes on Iran, rising from around 60p per litre at the end of last month to more than £1.30 yesterday.
The price rise has added £350 to the cost of filling up a 500-litre tank.
The Chancellor told MPs she had asked the Competition and Markets Authority (CMA) to look at the situation, saying the recent price hike ‘does not reflect market conditions’.
She added: ‘I will not tolerate companies exploiting the current crisis to make excess profits at consumers’ expense.’
Energy Secretary Ed Miliband wrote to the industry last night, saying the Government was ready to launch a full-blown investigation unless firms implement ‘fair, justifiable and fully transparent’ pricing.
Rachel Reeves said she was ready to protect 1.5 million households relying on heating oil, who are primarily in rural, off-grid areas and are not covered by the Government’s price cap
But Tory energy spokesman Claire Coutinho urged ministers to act faster to tackle ‘blatant profiteering’ and said there were reports of companies cancelling agreed orders, forcing customers to rebook deliveries at higher prices.
Emma Cochrane, of the CMA, said suppliers should honour agreed heating oil prices. ‘Suppliers should be clear what they are charging and terms must be fair,’ she said.
‘We won’t hesitate to take action if we suspect that consumer or competition law is being broken.’
Ministers are expected to hold further talks with industry representatives tomorrow.