Committee publication · Correspondence · 15 April 2026
Correspondence from UKIFDA relating to heating oil in Northern Ireland, dated 9 April 2026.
Summary
Ken Cronin, CEO of the UK Independent Fuel Distributors Association (UKIFDA), declines an invitation to give oral evidence to the Northern Ireland Affairs Committee on heating oil supply, citing prior commitments. He provides detailed written explanation of the heating oil crisis, attributing price spikes to doubled European jet fuel costs following the Middle East conflict and the Strait of Hormuz blockade. He outlines UKIFDA's response, defends against profiteering allegations, and offers to submit supplementary written evidence.
Key findings
- 62% of Northern Ireland households rely on heating oil as primary heating source; rises to 80% in rural areas, creating exceptional vulnerability to price volatility.
- Jet fuel prices (the primary cost driver for heating oil) more than doubled from 44.20p/litre (Jan-Feb 2026) to over 100p/litre by late March, driven by Middle East dependency (40% of Europe's 2025 jet fuel imports) and blocked Strait of Hormuz.
- Heating oil market comprises many small, family-owned distributors with minimal storage (most hold none or only two days' supply), no ability to hedge, and no long-term contracts—making them price-takers unable to absorb volatility.
- UKIFDA engaged proactively with government departments, contacted 160+ rural MPs, and cooperated with CMA review; members have honoured loss-making orders while deploying extra resources.
- 39-40% of Northern Ireland households spend more than 10% of income on energy costs, indicating severe fuel poverty; government funding support welcomed but urgent prioritisation to vulnerable households needed.
Tone
ProceduralTopics
Key actors
Ken Cronin, UKIFDA (UK Independent Fuel Distributors Association), Tonia Antoniazzi MP, Minister Shanks, Minister McCluskey, Competition and Markets Authority (CMA), Department for Energy Security and Net Zero, Northern Ireland Executive
Notable line
“The reality is that the current significant and sudden increases in heating oil prices are as a direct result of the European jet fuel price having more than doubled since the start of the conflict.”
Key Quotes
“Northern Ireland is uniquely reliant on heating oil, with just under two thirds of households (62%) using oil as their primary heating source. This makes Northern Ireland one of the most oil-dependent heating markets in Europe.”
“The main price driver of heating oil in the UK and Ireland is the wholesale price of jet fuel which is traded on the European market. This is because jet fuel and heating oil are both kerosene based.”
“For context, the average price for Jet Kero from 1st January to 24th February 2026 was 44.20 pence per litre (ppl). However, towards the end of March it was trading at over 100ppl.”
“In 2025, at least 40% of Europe's jet fuel came from the Middle East via the Strait of Hormuz which is currently blocked.”
“Instead of a few national suppliers, the market is made up of many local, often family-owned distributors operating with limited storage and buying fuel at the daily market price. They have no ability to hedge.”
“Most distributors have little or no storage. Many hold none and those that do rarely have more than two days' supply. Therefore, they collect fuel from refineries or terminals at the market price almost daily. In effect, they are price takers.”
Source · parliament.uk record ↗