Cost of Heating Oil Debate
Full Debate: Read Full DebateDepartment: Department for Energy Security & Net Zero
Sarah Dyke
Main Page: Sarah Dyke (Liberal Democrat - Glastonbury and Somerton)Department Debates - View all Sarah Dyke's debates with the Department for Energy Security & Net Zero
(1 day, 11 hours ago)
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Sarah Dyke (Glastonbury and Somerton) (LD)
It is a pleasure to serve under your chairship, Dr Allin-Khan. I thank my hon. Friend the Member for North Norfolk (Steff Aquarone) for securing this important and timely debate.
The ongoing cost of oil is a symptom of Trump’s idiotic war in Iran. Volatility in global energy markets and the lack of consumer protections for off-grid fuels have left many rural residents exposed to sharp price increases. It is leaving rural communities reeling, with many wondering how to heat their homes. The longer the crisis drags on, the greater the impact will be.
A third of homes in rural communities such as Glastonbury and Somerton are reliant on heating oil. Putin’s illegal invasion of Ukraine in 2022 saw prices of heating oil spike up to almost 160p per litre. Last month, prices peaked at 134p per litre and still sit at around 120p, more than 100% higher than before the war. Despite the impact of this sharp price increase, no action was taken to shield rural communities from future price spikes, no price cap has been created like it has for on-grid homes, and there has been no protection from Ofgem. Instead, all we have is another temporary sticking plaster.
The Liberal Democrats were the first to call for action, demanding an immediate three-month zero-rating for VAT on heating of all residential homes and a price cap to protect them from sudden price increases. Although we welcome the additional £53 million of support announced last month, that equates to a meagre £35 per household. Organisations such as National Energy Action, the End Fuel Poverty Coalition and Age UK agree that this limited funding support must go further.
Rural homes already cope with higher rates of fuel poverty, worse levels of energy efficiency and a fuel poverty gap of £987 compared with urban homes. Given that Glastonbury and Somerton has more households living in fuel poverty than the national average, any jump in oil and gas prices will result in further financial pressure. My constituents simply cannot afford that additional burden.
In the long term, we must consider how to support rural properties to transition away from oil and LPG as heating sources, so I hope that the Minister will be able to address that today.