Fuel Oil and Liquefied Petroleum Gas: Prices

(asked on 13th October 2026) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether her Department has made an assessment of the potential merits of replicating the Welsh Government’s support for low-income households using LPG or heating oil.


Answered by
Polly Billington Portrait
Polly Billington
Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 21st October 2026

In March 2026, the UK Government announced £53 million of targeted support for low-income households that use heating oil, including £3.8 million for Wales. The Welsh Government is using this funding to provide eligible low-income households that use heating oil or liquefied petroleum gas with a one-off £200 payment.

Equivalent support is already available in England through the Crisis and Resilience Fund. Local authorities can provide Crisis Payments to low-income households facing financial hardship with the cost of domestic heating fuels, including heating oil and LPG, and determine the most appropriate support according to local need


The Government published its formal response to the CMA heating oil report on 13 October, and plans to strengthen regulations in the market for the first time, making sure households who use heating oil are treated fairly. This will include developing options for a proportionate regulatory regime for the heating oil market, which will take time to get right, to ensure the best outcomes for consumers. In the meantime, we will work with industry to strengthen consumer protection measures in existing Codes of Conduct, which set rules for the sector. This is a clear indication of the Government’s commitment to create a fairer, more resilient and trusted heating oil market, which delivers stronger consumer protections while preserving competition and security of supply. The full response can be found here:

https://www.gov.uk/government/publications/heating-oil-government-response-to-cma-market-study/government-response-to-the-cma-heating-oil-market-study.

For households considering alternatives to oil heating, the Government is supporting the installation of low-carbon heating through the Boiler Upgrade Scheme. The scheme is open to domestic and small non-domestic properties in England and Wales and provides upfront grants towards eligible low-carbon heating technologies. It currently offers £7,500 towards the installation of air-to-water heat pumps and ground source heat pumps, £5,000 towards biomass boilers in limited circumstances, and £2,500 towards air-to-air heat pumps. A time-limited higher grant of £9,000 is available for eligible off-gas-grid properties replacing oil or LPG heating systems, helping households and small businesses most exposed to volatile fossil fuel prices to switch to low-carbon heating. The grant is deducted from the upfront cost by the installer, who applies to Ofgem on the property owner’s behalf. Eligibility, suitability and costs will vary by property, and households should seek advice from an MCS-certified installer before making changes to their heating system.

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