The move follows a price shock that saw costs jump from around 55p a litre in February 2026 to 104p in March, and the government says prices are now rising again.

The CMA found the market is generally competitive and that the spike largely reflected higher wholesale costs after the conflict in the Middle East, not excessive profits. But it identified gaps in protection compared with gas and electricity customers, including quotations, order cancellations, support for vulnerable households and access to dispute resolution. Around 1.5 million UK households rely on heating oil, many in rural and off-grid areas.

Scotland features in several parts of the response:

• Price transparency: The government acknowledges the CMA’s finding that online price transparency is lower in Scotland than elsewhere, and falls across Great Britain during periods of volatility. The CMA suggested a temporary price checker tool modelled on Northern Ireland’s CCNI Price Checker. The government says further work is needed, noting that commercial comparison services may already do the job in normal conditions, and that a state-run tool might not represent value for money.
• Devolved roles: Heating oil policy is reserved across Great Britain, so the proposed regulatory regime would cover Scotland. Consumer advocacy, however, is devolved, so the UK Government says it will work closely with the Scottish Government on any intervention on price transparency.
• Regional targeting: The government agreed to use the CMA’s regional analysis to target future support and consumer protections at areas most prone to high prices and supply disruption, working with the Scottish and Welsh governments and recognising the circumstances of rural and remote communities. This could include prioritising some households for faster moves to alternative heating.
• Financial support: Part of more than £50 million in targeted help for low-income oil-heating households, announced in March, has been made available to Scotland. The Boiler Upgrade Scheme, however, applies only in England and Wales.

The CMA called for authorisation of heating oil distributors, a register of oil-heated households, a priority service for vulnerable customers, a mandatory code of conduct including access to alternative dispute resolution, and enforcement powers for Ofgem.

The government agreed “in principle”, saying it will take time to build the evidence and legislative framework while avoiding burdens that could push suppliers out of the market. In the meantime, it will work with Ofgem and the industry body UKIFDA to strengthen existing codes of conduct and awareness of dispute resolution.

The government also agreed to review whether rules restrict minimum order volumes, which can make upfront costs hard to manage, and to require clear signposting of payment plans. It will not introduce a price cap along the lines of gas and electricity, in line with the CMA’s advice.

Head of energy transition at Consumer Scotland Alistair Hill said: “We welcome these planned reforms from the UK Government to protect heating oil consumers. Regulation will help ensure suppliers meet minimum standards, provide better information for customers, and deliver greater protections for those in vulnerable circumstances.

“However, consumers who rely on heating oil or LPG, particularly those in rural and island communities, remain exposed to volatility in global energy markets, placing significant pressure on household finances.

“That is why the Scottish Government’s recent decision to extend the heating oil support scheme, delivered through Advice Direct Scotland, is so important.

“All these measures are welcome, but improving energy efficiency and supporting more heating oil and LPG households to move to low-carbon heating systems can help deliver warmer homes, lower energy bills and greater energy security in the years ahead.”