“Vulnerable” households using heating oil will get £53m in immediate support funding from the government, Sir Keir Starmer has announced.
The prime minister said if heating oil companies are breaking the law, “there will be legal action”, as he promised to make sure the market is better regulated.
He added: “But we won’t just wait for that.
“I’m announcing immediate support for vulnerable heating oil customers today, providing £53m for those households that are most exposed.”
The funding will only be available to low-income households in rural communities reliant on heating oil.
Since the US and Israel carried out strikes on Iran on 28 February, the price of oil has soared as Tehran has cut off the crucial Strait of Hormuz, where more than 20% of the world’s oil has to pass through.
On Monday, the price of crude oil remained above $100 per barrel after jumping from $71 a barrel before the conflict began.
While the energy price cap, guaranteed until the end of June, covers mains gas and electricity, heating oil – which uses kerosene – is not included as it does not come under Ofgem’s remit.
Heating oil is used by 6% of UK homes, mainly in rural areas, but is used in nearly two-thirds of homes in Northern Ireland.
Some customers say the cost of heating oil has already doubled, while others said suppliers are cancelling orders and then jacking up prices.
Northern Ireland will receive £17m of the £53m fund, while England will get £27m, Scotland £4.6m and Wales £3.8m.
Sir Keir left the future of all energy prices up in the air after he told Sky News’ political editor Beth Rigby: “We’re not ruling anything out, but it is very difficult to say at this juncture what the position will be in July, which is when the current energy cap runs out, or what the position will be in September.”
He said the government’s focus is on de-escalating the war in Iran and getting the Strait of Hormuz re-opened “and trying to find a way to limit the impact”.
The PM added he is “absolutely determined to clamp down on anybody who may think of ripping others off in a situation like this”.
“But I’m not going to say to you now, because so much is unknown, what we might do in July.”
Sir Keir also defended his approach to the war after being criticised for not wanting to help the US and Iran launch offensive strikes on Iran.
“While taking the necessary action to defend ourselves and our allies, we will not be drawn into the wider war,” he said.
The PM said he is clear that the UK will protect “our people in the region” and will keep working towards a “swift resolution that brings security and stability back to the region and stops the Iranian threat to its neighbours”.
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