Higher Oil Prices Fuel Heat Fund Demand

February 6, 2025

Higher Oil Prices Fuel Heat Fund Demand Featured Image

Heat Fund, Fuel Bank Foundation’s emergency support service for people living off-grid, has helped more than 1,500 homes since it was launched in 2021.

The scheme, which was originally set up as a pilot project, in partnership with the Scottish Government, provides support to households in remote or rural locations reliant on unregulated fuels like heating oil and LPG. Households that can’t afford to buy fuel to fill their coal bunker, wood store, LPG bottles or heating oil tank, can apply to Heat Fund for an emergency delivery. Following the success of the pilot in Scotland, the scheme was rolled out across the UK.

“Before we launched Heat Fund there was very little support for people who live off the gas grid. Heat Fund addresses this issue and provides a lifeline for vulnerable consumers, often living in rural and sometimes remote areas.”
Matthew Cole, CEO of Fuel Bank Foundation

Around 1.5 million homes in the UK rely on unregulated fuels like heating oil because they are not connected to the mains gas grid.

Unlike electricity and mains gas supply, which are regulated and offer consumers a level of price and supply protection, the solid fuel market currently isn’t, leaving consumers exposed to higher fuel costs, with oil prices fluctuating daily. This is made far worse by the fact they have no choice but to buy their fuel in bulk, with most heating oil suppliers having a minimum order quantity of 500 litres.

Heating oil prices have remained high over the last three years. In December 2024, a family buying 500 litres of heating oil faced having to pay a huge £332.95 in one bill just to heat their home.

“Due to the volatility and fluctuating price of unregulated fuels, such as heating oil, budgeting and saving up to cover energy costs is really difficult. An unanticipated price rise can easily leave people unable to top up a fuel store for weeks on end, leaving them without heat and hot water in their home. We often hear from people who are unable to cook warm meals, bathe their children and are having to live in cold, damp homes.
Tina, Heat Fund, Senior Support Officer

“I am extremely proud of what the Heat Fund team has achieved in the last four years. 1,500 homes off the gas grid have received an emergency delivery of fuel, ensuring that thousands of people who would have otherwise faced harsh, cold conditions received the essential warmth and support they needed.”