CMA report gives customers confidence that heating oil sector acted responsibly during the Gulf conflict
Putting customers first during uncertain times
When global events disrupt energy markets, it’s customers that often feel the direct impact.
The conflict in the Gulf proved to be no exception, creating uncertainty across international fuel markets.
Wholesale prices rose sharply, and that affected the cost of heating oil across the UK, including here in the South West.
We know that many households across Devon and the South West were worried about rising costs. We understood those concerns then, and we understand them now.
It’s why we’ve worked hard to keep our customers informed about the true facts throughout, especially given speculation about the possibility of profiteering from certain sectors of the market.
Today, we welcome the Competition and Markets Authority’s (CMA) independent review into heating oil prices during that period of market disruption.
Its findings provide reassurance for our customers and reinforce what we have always believed: that the sector acted responsibly and appropriately.
An independent review of the market
In its report announced on 15 July 2026, the CMA concluded:
“Overall, the evidence shows that the home heating oil market is typically competitive, with retail prices closely linked to wholesale prices and distributors’ operating margins generally thin.”
In other words, the investigation found that the home heating oil market remained competitive and that retail prices reflected movements in wholesale markets, rather than excessive distributor profits.
For our customers, that’s an important distinction.
The significant price increases seen during the conflict were driven primarily by rising wholesale market costs. These were influenced by geopolitical events outside the control of heating oil distributors.
How wholesale markets set the price
The important takeaway is that heating oil distributors did not and do not set the wholesale price of kerosene, which is tied to the price of jet fuel (Jet Kero). Sadly, when geopolitical events disrupt supply or create uncertainty, wholesale prices can rise rapidly, and to remain in business these costs have to be passed on to customers.
Distributors in this instance are price takers, not price makers, but they still need to remain competitive.
The CMA’s findings reflect this reality and confirm that the market continued to operate competitively, despite the exceptional circumstances.
Supporting customers throughout the crisis
Yesterday, our industry body – The UK and Ireland Fuel Distributors Association (UKIFDA) – welcomed the CMA’s conclusions.
It noted that, in the vast majority of cases, distributors continued to operate within their normal contractual terms despite unprecedented market conditions and exceptionally high demand.
UKIFDA also highlighted that distributors worked with government during the crisis to raise concerns about the impact on customers and to help secure support for vulnerable households as quickly as possible. This has since resulted in financial support through the Crisis and Resilience Fund, which you can find out more about here.
The Association also welcomed the CMA’s recommendations to strengthen consumer protections further and has committed to working with governments to implement improvements where needed.
It’s an approach that we wholly support.
What matters to you matters to us
At Moorland Fuels, we’ve always believed that good service means more than delivering fuel.
It means being open and honest.
It means communicating clearly when markets are uncertain.
And it means putting customers at the heart of every decision we make.
As an employee-owned business, that’s exactly how we operate.
We welcome the CMA’s recognition that the home heating oil market is competitive and offers customers choice and pricing transparency across much of the UK, including here in Devon and the South West.
We also welcome any measures that improve outcomes for vulnerable customers and strengthen confidence in the market.
Looking ahead
Global energy markets will always respond to world events. This can lead to price rises, but also price falls. Our commitment is always to be fair and transparent, and to support our customers as best we can.
That means continuing to offer fair pricing, clear communication and dependable service whenever you need us.
It’s also why we offer customers access to our Cosy Heating Club, where you can pay by monthy Direct Debit, helping to iron out costs throughout the year. As Mr Mark Berry, winner of our quarterly 500l heating oil draw discovered, membership brings a host of other benefits too.
Reassuringly, yesterday’s CMA’s independent investigation confirms that the heating oil market remained competitive throughout the Gulf crisis and that distributors did not materially profit from the exceptional market conditions.
For us, that reinforces something we’ve always believed in: doing the right thing and putting our customers first.
Because at Moorland Fuels, what matters to you matters to us.
If you have any questions or need guidance, our team is here to help. Contact us on: 01837 55700. info@moorlandfuels.co.uk
