Sir Keir Starmer has warned energy companies they must pass on “every penny of savings” to customers amid soaring oil prices.
At a Monday press conference, Sir Keir announced a £53 million support package to help households grappling with spiralling energy costs.
The prime minister said he has given a legal direction to company chiefs to ensure that savings from the energy price cap are passed directly onto consumers. He also laid out targeted support for the most vulnerable of the 1.5m households reliant on heating oil.
Chancellor Rachel Reeves is expected to set out the full details of the package of support next week, which is expected to involve direct payments to vulnerable households. However, it is not known exactly how many homes will receive the support.
Speaking at the conference, he said the UK “will not be drawn into the wider war” but confirmed he is working with allies on a plan to reopen the Strait of Hormuz.
The prime minister has resisted Donald Trump’s demands to send Royal Navy warships to help secure the vital shipping route for oil and gas which has been effectively closed to tankers by the Iran war.
Key Points
- Starmer announces £53m support package for heating oil customers
- UK to help 'restore freedom of navigation' for ships near Strait of Hormuz
- Starmer avoids calls from Trump to deploy warships to the Strait of Hormuz
- 'Form of rationing' could be introduced to prevent short supply of oil
- Analysis: Cost of living consequences of war are terrifying for Starmer
UK 'cannot rule anything out' in Middle East, armed forces minister says
15:23 , Nicole Wootton-CaneThe UK “cannot rule anything out” in the Middle East but will “continue to work in a comprehensive and calm manner,” the armed forces minister has said.
Speaking at defence questions, Al Carns said: “We are going to continue to work in a comprehensive and calm manner with our allies and partners to ensure we come up with a solution to the Strait of Hormuz and we’re not going to rule anything out because we cannot guarantee where this war is going to go.”
Richard Tice defends Reform plan to deny benefits to some EU migrants despite trade war warning
15:15 , Nicole Wootton-CaneReform’s Richard Tice has defended his party’s plans to deny benefits to some EU migrants.
When questioned by The Independent’s Athena Stavrou, Mr Tice said staying close to the EU’s “failing economic model” is the “last thing in the world we should be doing”.
UK looking at 'innovative options' in Middle East, Healey says
15:05 , Nicole Wootton-CaneDefence secretary John Healey has said the UK is looking at “innovative options” in the Strait of Hormuz, including the use of interceptor drones.
“The Straits of Hormuz are vital to the international economy and security,” he said during defence questions.
“We are in continued conversations with European allies and with the US. These questions are complex, any plans must be multilateral with as many nations taking part as possible.”
He added the UK has pre-positioned autonomous minehunting capabilities in the region, and are using counter drones.
“We are looking at innovative options including interceptor drones,” he added.
More RAF jets flying in Middle East than any other time in the last 15 years, minister says
14:59 , Nicole Wootton-CaneThe UK has more jets flying in the Middle East currently than at any other time in the 15 years, the defence minister has said.
Speaking at defence questions on Monday, John Healey said: “The RAF have conducted now over 550 hours of defensive operations in five countries, and drones have been shot down by UK forces almost daily.
“We now have more jets flying in the region than at any time in the last 15 years.”
Senior military figures warning UK 'not ready for war', Lib Dem defence spokespersonsays
14:51 , Nicole Wootton-CaneDefence ministers have been asked why the defence readiness bill and defence investment plan have been delayed despite the urgency of the situation in the Middle East.
“At a time where senior military figures have warned repeatedly the UK is not ready for war, my question is this: If the threat is urgent, why isn’t the legislation?,” Liberal Democrats defence spokesperson James MacCleary asked.
Defence minister John Healey said work is going on “all the time” to prepare the defence investment plan.
Delay in defence investment plan 'not holding up' decisions in Middle East, minister says
14:46 , Nicole Wootton-CaneDefence secretary John Healey has insisted delays to the publication of the defence investment plan are not holding up military decisions related to the Middle East.
Speaking during defence questions in the Commons on Monday, Mr Healey declined to set out operational arrangements when asked whether autonomous mine clearing vessels in the Gulf are currently operational.
“The defence investment plan is not holding up important decisions,” he said.
Farage’s immigration plans will spark EU trade war ‘worse than Trump tariffs’, warns minister
14:30 , Nicole Wootton-CaneReform UK’s policies would spark a trade war with the EU with far worse consequences than Donald Trump’s tariffs, a senior minister has claimed.
European affairs minister Nick Thomas Symonds, who is responsible for negotiating the Brexit reset for Keir Starmer’s government, has dismissed Reform leader Nigel Farage as “not a serious candidate for prime minister.”
It came as he warned that Reform’s plans to tear up the settled status deal for EU citizens will spark a trade war even before they try to pull out of any other deals.
The Independent’s political editor David Maddox has this exclusive story:
Farage’s plans will spark EU trade war ‘worse than Trump tariffs’, warns minister
Watch: Strait of Hormuz reopening won't be a Nato mission, Starmer says
14:15 , Nicole Wootton-CaneUS-Iran war will cause spike in food prices, NFU chief warns
14:00 , Holly EvansThe crisis in the Middle East will cause the largest spike in food prices since Vladimir Putin’s invasion of Ukraine, the boss of a major farming union has warned.
Meanwhile, fruit and vegetable producers have warned that the UK may see empty supermarket shelves if nothing is done to support the sector amid escalating turbulence.
Tom Bradshaw, the chairman of the National Farmers’ Union, told The Times that the US-Iran conflict had triggered an “inflationary wave” that is likely to peak in the autumn.
However, he said food inflation is unlikely to surpass the 19.1 per cent rise in the year to March 2023, the year after the Ukraine war began.
Read the full article here:
US-Iran war will cause spike in food prices, NFU chief warns
40 per cent heating oil sourced from Middle East
13:45 , Holly EvansKen Cronin, chief executive of UKIFDA, the trade association representing heating oil distributors, told The Independent that another complication adding to the rising cost of heating oil, versus oil typically used for energy across the UK, was the amount sourced from the Middle East.
Only around 10 to 15 per cent of crude oil comes from that region into the British mix, but for heating oil – which, as a kerosene product, is closer to jet fuel than that which ends up powering cars and heating homes – it’s a 40 per cent dependency.
The eventual flip side of such rapid price climbs is that it will be the exact same process as the markets come down.
“Although there has been a rapid increase, there would be a rapid decline as well if the situation around Iran improves or supply eases,” said Mr Cronin. “There’s no lag whatsoever in this market and that’s reflected in consumer prices. As an example, post-Ukraine there was normalised pricing very quickly – whereas it’s still reflected in gas and electricity.
“During Covid, all the planes were grounded so there was a huge amount of kerosene fuel stock, so it was down to 25p per litre. Regional distributors are fighting for business so pricing is competitive and reacts fast to markets.”
Starmer rejects Trump’s threats after US president warns Nato faces ‘very bad’ future
13:30 , Holly EvansA senior cabinet minister has delivered a sharp response to threats by Donald Trump if the UK and other Nato countries refuse to send warships to protect oil supplies in the Middle East.
Work and pensions secretary Pat McFadden said the Iran war had nothing to do with Nato and Britain did not have to support all military actions by the US.
His comments came after Mr Trump said Nato faced a “very bad future” if member states did not use their navies to support the US in the Strait of Hormuz where Iran is blocking fuel tankers taking oil to the rest of the world.
Read the full article here:
Starmer rejects Trump’s threats after US president warns Nato faces ‘bad’ future
PM denies misleading MPs over Mandelson appointment
13:15 , Holly EvansSir Keir Starmer has denied misleading MPs by telling them due process was followed in the appointment of Lord Peter Mandelson as ambassador to the US.
Files released on March 11 showed Sir Keir’s national security adviser, Jonathan Powell, had described the peer’s appointment as “weirdly rushed” and Lord Mandelson had been named as the new ambassador before his vetting had been completed.
Asked whether he had misled the Commons by telling them due process had been followed, the Prime Minister told a press conference on Monday: “No.”
Sir Keir added that his ethics adviser, Sir Laurie Magnus, had considered the question last week, “and answered very robustly that the process had been followed”.
But he continued that the process “wasn’t strong enough”, saying: “Amongst the changes that I intend to put into place is the fact you can’t announce something until the vetting is finished.
“It wasn’t an individual decision in the Mandelson case, that was the process. We only have to look at that in the light of the appointment to realise that that needs to change.
“But on due process, that process that was there was followed, the problem was the process wasn’t strong enough. Ultimately, it was my mistake and I have apologised for that and quite right too.”
Badenoch says Starmer needs to come up with a plan before offering military support
13:00 , Holly EvansThe Government should not concede to US President Trump’s demands to send warships to the Middle East until it comes up with its own plan, Kemi Badenoch has said.
The Conservative leader said that Sir Keir Starmer should consider his own strategy before offering military support to the US.
Speaking during a visit to a kosher supermarket in Golders Green, north London, Ms Badenoch said: “We have believed in freedom of navigation as a country for centuries, even this government has had targeted strikes at the Houthis in the Strait of Hormuz.
“But what is the plan? We need to see the plan.
“It is not clear the Prime Minister has been involved in the planning process. All of our allies seem to be worried about how slow he is.
“I’m worried that he’s not deep enough in conversations with the US. But before we start sending ships out, we need to know what the plan is.
“What I want to see is the Prime Minister coming up with a plan for the national interest, not just what his Labour backbenchers want. This is not just about the Labour Party. This is about the whole country.”
The Iranian-backed Houthis in Yemen have repeatedly attacked Red Sea shipping routes, on the other side of the Arabian peninsula from the Strait of Hormuz.
Tice criticises notion people should ‘pay maximum tax’
12:50 , Holly EvansRichard Tice has hit back at calls from the Labour Party that his tax affairs should be investigated after the Sunday Times reported he had "avoided nearly £600,000 in corporation tax" through his property company.
Speaking at a press conference on Monday, the Reform MP said he had paid taxes as required, and criticised the notion people should “pay the maximum tax you possible could”.
Asked whether his tax affairs were “morally above board”, he said: “How many friends of yours voluntarily choose to pay more tax than they're legally obligated to do?”
He said: “This idea that morally we've got to pay the maximum tax we possibly can….Therein lies the road to ruin for the UK as an economy.”
Asked if he would encourage others to pay as little tax as possible, he added: “Don't morally or voluntarily give more tax to incompetent, wasteful, hard left socialist governments to waste on your behalf. Definitely not.”
Starmer set to meet with Ukraine's Zelensky
12:37 , Holly EvansSir Keir Starmer is planning to hold talks with Ukraine’s Volodymyr Zelensky amid fears the oil price rises due to the Middle East crisis could result in a “windfall” for Russia’s Vladimir Putin.
The Prime Minister said he would meet the Ukrainian president soon to maintain focus on the war despite international attention being diverted by the Iran conflict.
The rise in energy prices caused by the Middle East turmoil has benefited Russia despite the sanctions imposed on its industries.
The US temporarily loosened sanctions preventing other countries buying Russian oil and petroleum already loaded on vessels at sea to try to ease the pressure on global supplies triggered by the US-Israel strikes on Iran and Tehran’s retaliation against Gulf states.
The conflict could also constrain supplies of air defence missiles for Ukraine because of the surge in demand in the Middle East.
92,000 UK nationals return on government and commercial flights
12:15 , Holly EvansSir Keir Starmer has said the Government is working “around the clock” to repatriate Britons stranded in the Middle East.
More than 170,000 British nationals have registered their presence in the region since the start of the Iran war.
The Prime Minister told reporters at a press conference on Monday morning: “We continue to work around the clock to help our people in the Middle East.“
As of this morning, over 92,000 British nationals have returned to the UK on commercial and government-chartered flights.“Now that work continues, including to support British citizens in Lebanon.”
He added: “Our armed forces are working 24/7 to protect British lives and British interests, and support our Gulf partners.“We have thousands of service men and women in Cyprus and across the region, three squadrons of fighter jets working alongside counter drone teams to intercept Iranian attacks.“They are protecting our people, our bases and our allies, night and day, and I pay tribute to all of them.”
Reform are ‘absolutely united’ Iran position after confusion, Tice says
12:06 , Athena StavrouRichard Tice has insisted Reform UK is “absolutely united” in their position on Britain’s involvement in the Iran war, after the party was seen to be flip-flopping on the issue.
Speaking at a press conference on Monday, Mr Tice said: “No one wants to rush into war at anytime.”He added the party “all absolutely united”.
However, he said Sir Keir Starmer was “completely wrong” not to allow the US to use British bases during their initial strikes on Iran.
Last week, Nigel Farage has sparked further confusion over the party’s position on Britain’s involvement in the war in the Middle East, as he declared the UK should “not get involved”.
But the week before, Mr Farage spoke in favour of intervening in the conflict, saying it was “different” to the Iraq War and insisting it would be “worth it” if British involvement helped to thwart Iranian hopes of developing a nuclear weapon.
Reeves says heating oil prices are 'urgent problem' for families in rural communities
11:55 , Holly EvansChancellor Rachel Reeves acknowledged the “real and urgent problem” for low-income households reliant on heating oil.
The Treasury said Northern Ireland, where a greater proportion of homes rely on heating oil, has been allocated £17 million, while England will receive £27 million, Scotland will get £4.6 million and Wales given £3.8 million.
The funding allocations were based on census data, the Treasury said, and will be allocated directly to the devolved governments to be used to support vulnerable households, mostly in rural areas.
Chancellor of the Exchequer Rachel Reeves said: ”Heating oil prices have spiked sharply, and I know that for families in rural communities that is a real and urgent problem.
“That’s why we’re putting over £50 million of support to help the people who need it most, including funding for the Northern Ireland Executive to deliver support in Northern Ireland where this issue hits hardest.”
Renewable energy to provide UK with better security, Starmer argues
11:41 , Holly EvansPlans to reach net zero will help the UK gain more control over energy prices, Sir Keir Starmer has said amid concerns the war in the Middle East may trigger a cost of living crisis.
This comes after the cost of heating oil, which is used by around 1.5 million homes, doubled since the crisis began.
Speaking at a press conference in Downing Street, Sir Keir was asked by GB News about opening up oil and gas fields to mitigate the energy price spike instead of pursuing net zero.
Sir Keir replied: “The question I’m answering or trying to address is: what are the measures that are actually going to take money off bills now or in the foreseeable future – and that is by ensuring that we’ve got a better mix of renewables, and that we go to renewables.
“But there’s no denying – because we’ve seen this first-hand, we saw it in Ukraine, we saw it in the Twelve-Day War, we’re seeing it again now – if you’re on the international market for oil and gas, you’re vulnerable to the price going up on the international market.
“Because we, the UK, have little control over that, and obviously, oil doesn’t give us control over that, because we sell onto the market.
“What gives us control is renewables, our own home-grown energy, which is then more secure and more independent, which is why I think that we should go further and faster in relation to renewables.
“Let’s get control of our own energy, so that whatever is happening in the world, we control what’s happening in this country.”
Watch: Strait of Hormuz reopening won't be a Nato mission, Starmer says
11:34 , Holly EvansAnalysis: Cost of living consequences of war are terrifying for Starmer
11:26 , Holly EvansOur political editor David Maddox writes...
Keir Starmer had to come out strongly this morning with the threat of the Strait of Hormuz being closed by Iran in retaliation to Donald Trump’s war.
Already last week the prime minister had looked flat footed on issues like fuel duty and heating oil as the cost of a barrel of oil soared over $100 and gas prices spiked.
There had been queues at garage forecourts in what was just a taster of what could happen if a full blown panic settles in. And the ongoing question of a 5p hike in fuel duty will not go away.
This morning’s press conference was a response not shaped by involvement to any degree in the war itself but dealing with those cost of living issues, particularly on a day when Gordon Brown’s former advisor Nick Butler was discussing petrol rationing.
That is why Sir Keir was keen to emphasise the action he is taking to keep energy bills down in particular.
But it was also why he was non-committal about action in the Strait of Hormuz and hinted that the UK could get involved militarily there.
In the end if oil tankers cannot get down the straits it will cause a worldwide crisis with one fifth of the world’s supply cut off.
Sir Keir does not want to be “dragged into the wider war” but given his precarious political position he cannot afford a fuel shortage or massive hike in bills.
Ending the war is quickest way to reduce cost of living, Starmer says
11:23 , Holly EvansEnding the war in the Middle East “is the quickest way to reduce the cost of living”, the Prime Minister has said as he pledged to work toward a de-escalation of the conflict in the region.
“We will continue to work towards a swift resolution of the situation in the Middle East because there is no question ending the war is the quickest way to reduce the cost of living,” Sir Keir Starmer said.
He added: “It’s moments like this that tell you what a government is about.
“My answer is clear: whatever the challenges that lie ahead, this government will always support working people.
“That is my first instinct, my first priority, to help you with the cost of living throughout this crisis.”
Watch: Starmer insists UK needs 'credible viable plan' to reopen Strait of Hormuz
11:14 , Holly EvansPM insists he has 'good relationship' with Trump
11:13 , Holly EvansAsked how he would rank his relationship with Donald Trump from zero to 10, Sir Keir Starmer has insisted they maintain a “good relationship”.
Following their conversation on Sunday evening, he said: “We are strong allies, have been for decades.”
He added: "But it is for me to act in what I consider to be the best interest of Britain.”
Since the outbreak of the Iran conflict, the US president has been critical of Sir Keir, and said that he was disappointed in his response to the initial strikes, by refusing to allow US troops to use British military bases.
Starmer avoids speculation on future support for energy bills
11:07 , Holly EvansAsked if he is ruling out a multi-billion pound support package for energy bills like the one introduced by the Tories in 2022, the prime minister has avoided speculation given the unpredictable nature of the conflict.
Instead, Sir Keir said the government is going to attempt to "de-escalate" the war to bring prices down.
"And as soon as, it's necessary to say anything further, I will obviously do so," Starmer told reporters.
"But it's simply not sensible to say that in a number of months time, not knowing what the situation will be, that the following will be ruled in or ruled out."
Starmer insists UK needs 'credible viable plan' to reopen Strait of Hormuz
11:02 , Holly EvansAsked about Mr Trump’s demand to send warships, Sir Keir said: “That’s one of the pressing issues of the day, it’s something I discussed with president Trump yesterday on the phone. There have been discussions going on in relation to a viable plan.
“We want to make sure that that involves as many partners as possible, that’s been our stated objective here, particularly talking to European partners, inevitably talking to Gulf partners and the US.
“We need a credible, viable plan because this is to say the least not easy and is not straightforward and therefore we have to make forward we have to make sure we’ve got that credible plan in place.”
Keir Starmer does not rule out getting involved in the Strait of Hormuz
10:59 , Joe MiddletonThe Independent’s political editor David Maddox reports
The prime minister has said he spoke to Donald Trump over the weekend about the Strait of Hormuz and keeping it open.
Sir Keir Starmer has not ruled out getting involved in getting the straits open but said: “We want as many partners as possible involved as possible.”
He insisted it is “vital” to keep the straits open because of the impact on fuel prices and supply.
He said: "We are looking at what we can do.”It is unclear whether the UK will send shipping from the Royal Navy to reopen the straits.He noted: “The Strait of Hormuz is a separate discussion [to getting involved with the war], and it is a discussion, I want to emphasise that. There are no decisions that have been made yet.”
However, he insisted: “Our priority is to deescalate the war.”
Analysis: Prime minister lays out his priorities
10:57 , Holly EvansOur political editor David Maddox writes...
The prime minister has said he wants “to see an end to this war [between the US and Iran] as quickly as possible.”
Speaking at a press conference in Downing Street he emphasises that his priority is deescalation and “we will not be dragged into the wider war.”
Sir Keir is resisting doing anything beyond defensive action despite demands from Trump that the UK takes part in the wider protection of the Strait of Hormuz.
Watch: Starmer says UK 'will not be drawn into wider war' despite Trump pressure
10:56 , Holly EvansStarmer defends decision not to send troops to Iran
10:54 , Holly EvansSir Keir Starmer has defended his decision not to join the US’s intervention in Iran with British troops.
He said: “Moments like this also tell you about leadership. Whether to commit British troops to military action is the most serious responsibility for a British prime minister.”
Addressing criticism from Trump and Uk opposition figures, he said: “Our decision should be based on a calm level headed assessment of the British national interest. And if we are to send our British servicemen and women into harm’s way, the very least they deserve is to know they do so on a legal basis and with a proper thought through plan.”
Starmer gives legal direction to energy firms to ensure savings passed on to consumers
10:47 , Millie CookeSir Keir Starmer has announced plans to give a legal direction to energy companies to ensure that savings from the energy price cap are passed directly onto consumers.
“I can announce today that we're giving legal direction to energy companies to ensure that every penny of savings from the last budget is passed directly the customers to keep bills as low as possible”, he said.
The PM added: “I simply will not allow companies to make huge profits from the hardship of working people.”
Starmer announces £53m support package for heating oil customers
10:46 , Holly EvansThe prime minister has announced a £53m support package for households that use heating oil.
They are not protected by the energy price cap, with dramatic increases in costs largely affecting rural areas.
Starmer says reports that companies have been cancelling orders and subsequently "jacking up prices" are "completely unacceptable".
UK to help 'restore freedom of navigation' for ships near Strait of Hormuz
10:41 , Holly EvansSir Keir Starmer has said that the UK will work alongside allies to create a “viable collective plan” that can restore freedom of navigation for ships near the strait of Hormuz.
The prime minister said: "We've already acted alongside other countries to release emergency oil stocks at a level that is completely unprecedented, but ultimately we have to reopen the Strait of Hormuz to ensure stability in the market.”
Starmer: We cannot allow Iran war to become windfall for Putin
10:38 , Millie CookeThe Independent’s political correspondent Millie Cooke reports from No 10
Sir Keir Starmer has warned against allowing the war in Iran to benefit Vladimir Putin.
He told a press conference in Downing Street: “It's vital we continue to focus on supporting Ukraine.
“We cannot allow the war in the gulf to turn into a windfall for Putin.”
He added that he had spoken to allies, including Canadian prime minister Mark Carney on Monday, and was due to meet with Ukrainian president Volodymyr Zelenksy soon.
We will not be drawn into the wider war, Starmer warns
10:36 , Millie CookeThe Independent’s political correspondent Millie Cooke reports from No 10
Sir Keir Starmer has insisted that the UK will “not be drawn into the wider war” in Iran as the conflict enters its third week.
It comes as Donald Trump piles pressure on Britain and other allies to send warships to the Strait of Hormuz to protect the shipping route.
But Sir Keir has so far resisted the calls, on Monday insisting ministers are working hard to secure de-escalation.
Starmer to give update on Iran shortly
10:22 , Holly EvansSir Keir Starmer is due to give an update on the conflict in Iran at 10.30am from Downing Street.
We’ll be bringing you all the latest updates here.
Fuel price surge continues as diesel reaches 160.3p per litre
10:17 , Holly EvansDiesel prices have soared by an average of 18p per litre since the start of the Middle East conflict, new figures suggest.
The RAC said the average price of the fuel at UK forecourts on Sunday was 160.3p per litre.
This is compared with 142.4p when the US-Israeli campaign against Iran began on February 28.
The 13 per cent increase means diesel is at its most expensive level since November 2023.
Petrol prices are up 7 per cent over the same period, rising from 132.8p per litre to 141.5p per litre.
The last time petrol was more expensive was August 2024.
Oil prices – which have a significant effect on the cost of wholesale fuel – have exceeded 100 dollars a barrel for the first time since 2022 in response to Iran’s stranglehold on oil tankers passing through the Strait of Hormuz.
What will Starmer say?
09:54 , Holly EvansInside Downing Street, Sir Keir will say: “It’s moments like this that tell you what a Government is about.
“My answer is clear. Whatever challenges lie ahead, this Government will always support working people.
“That is my first instinct – my first priority – to help you with the cost of living through this crisis.”
The Prime Minister will also raise concerns about claims that suppliers of heating oil have cancelled orders and then jacked up prices.
Sir Keir will say: “I will not tolerate companies trying to exploit this crisis to make money from working people… if the companies have broken the law, there will be legal action.”
De-escalation of the war is the quickest way to reduce cost-of-living pressures for the British public, the Prime Minister will insist.
'Form of rationing' could be introduced to prevent short supply of oil
09:35 , Holly EvansAn expert has warned that the conflict in the Middle East could lead to a shortfall in supply over the next two months, which could involve “a form of rationing”.
Nick Butler, the former head of strategy at BP and a former adviser to Gordon Brown, said: “I think we learnt from the tanker drivers dispute in 2000 that oil and gas supplies are absolutely crucial to the running of the economy and you can’t bring on new supplies quickly.”
He told the Today programme on BBC Radio 4: “In the short-term, we have to look at what supply we have and look at the crucial sectors, the health service, food supply, hospitals, those are key elements that must be protected. And beyond that, it is then for the government to decide how to ration what is left if we get to that situation.”
What is heating oil and who uses it?
09:14 , Holly EvansHomes and businesses in remote areas or those built decades ago often have a tank that pumps oil directly into the property when required. The oil type used in this setup is typically kerosene-28 and it is usually ordered by phone or online from a local supplier when reserves run low.
As with any commodity, prices go higher when demand outstrips supply and the global oil supply is under severe pressure, with the cost of heating oil rising from around 66p per litre on 2 March to up to 128 pence per litre on 16 March.
There is, however, a wide discrepancy in pricing due to the nature of how consumers order heating oil.
Whereas other energy sources such as gas or electricity are typically contracted through large providers, like Octopus or British Gas, heating oil is usually bought directly on an as-and-when-needed basis. That isn’t just the case for consumers, but for distributors themselves. Due to homes and businesses usually having, for example, 12-month contracts with their supplier, the big companies typically know how much usage they will have over the coming months and, with the price cap in place, how much the bills will be.
With heating oil, it’s different. There’s no need for consumers to use the same suppliers every time if they don’t want to, and the suppliers themselves tend to be far smaller, often either family-run businesses or regional firms. There are around 120 such heating oil providers across Britain, compared to around two dozen of the larger energy firms supplying electricity and gas.
Therefore, the heating oil distributors themselves are typically buying in the product every day or several times a week, paying the current market rate in the process. It means that, while the price of Brent crude has risen, Brits won’t immediately see it on their bills – but those buying in heating oil will do.
Davey to call on Starmer to replace nuclear deterrent to end Britain’s reliance on Trump’s America
09:00 , Holly EvansBritain must disentangle its nuclear deterrent from American reliance, according to Liberal Democrat leader Sir Ed Davey, who argues the current system is dependent on an increasingly unreliable United States.
While the UK’s Trident nuclear missile system is operationally independent, allowing the government to deploy it if deemed necessary, Sir Ed will contend in a speech at the party’s spring conference that its reliance on US manufacture and maintenance undermines its true independence.
Sir Ed is set to call for a "genuinely, verifiably" independent nuclear deterrent to replace Trident, citing US President Donald Trump as an undependable ally.
Speaking at the Lib Dem spring conference in York, he will state: "Britain’s nuclear deterrent must be genuinely, verifiably ours – not dependent on Trump or whoever his successor may be. Trump has proven we can’t rely on America as a dependable ally."
Read the full article here:
Davey to call on Starmer to replace nuclear deterrent to end Britain’s reliance on US
PM talks to Trump about importance of reopening Strait of Hormuz
08:45 , Holly EvansSir Keir on Sunday spoke to Mr Trump for the first time since the US president called for help from other nations to secure the Strait of Hormuz.
The pair “discussed the ongoing situation in the Middle East and the importance of reopening the Strait of Hormuz to end the disruption to global shipping, which is driving up costs worldwide”, a Downing Street spokeswoman said.
Elsewhere, Foreign Secretary Yvette Cooper has mobilised more than £5 million in aid for humanitarian organisations in Lebanon amid a war between Israel and the militant group Hezbollah.
Analysis: Starmer’s heating oil intervention will also lead to a fuel duty U-turn
08:35 , Holly EvansOur political editor David Maddox writes...
Keir Starmer will today unveil plans to help the approximately 1.5 million households which use heating oil but it is going to bring a question: “What about the rest of us?”
There is a good reason for the government to help people who rely on heating oil to keep their homes warm particularly as the winter weather stretches on into the spring.
These households are not protected by the energy price cap and the government has been accusing suppliers of so-called “price gouging” - taking advantage of the current Iran war to hike prices.
But the issue for the prime minister is that now he is agreeing to this limited intervention it will fuel demands for a wider one.
In particular, there is massive pressure growing over petrol and diesel costs on garage forecourts with demands that Rachel Reeves cancels her 5p hike in fuel duty in September.
There will be only so long that the PM can say it will be reviewed in the autumn as political momentum grows on this issue especially as prices inevitably go up.
So today’s announcement on heating oil can also be perhaps seen as an indicator of another one of Sir Keir’s infamous U-turns this time on fuel duty.
Northern Ireland minister calls for 'meaningful' intervention
08:23 , Holly EvansStormont finance Minister John O’Dowd has said any UK Government subsidy for those who use heating oil to warm their homes must be “meaningful”.
Mr O’Dowd wrote to the Treasury last week calling for a financial intervention over the cost of the energy price spike caused by the war in the Middle East.
Mr O’Dowd told the BBC that the powersharing Executive did not have the “financial wherewithal to make a meaningful contribution to support hard-pressed working families”.
Around two-thirds of homes in Northern Ireland use home heating oil.
Mr O’Dowd said: “While we welcome the fact that we now have a clear indication from the Government that there will be a financial intervention, it is going to have to be meaningful, it is going to have to be delivered quickly and it is going to have to make a difference to those who are facing financial crisis.
“We haven’t been given the detail of any scheme, my officials will be engaging further today with Treasury.”
Britain now has a chance to influence the direction of the war on Iran
08:17 , Holly EvansTurns out America needs friends after all. Donald Trump has appealed via social media, specifically and “hopefully”, to “China, France, Japan, South Korea, the UK, and others” to send ships and help free the Strait of Hormuz. Indeed, President Trump has since extended his dubious invitation to all “the Countries of the World that receive Oil through the Hormuz Strait”. Presumably that would even mean welcoming the North Korean “People’s Navy” to help out by escorting oil tankers and other commercial maritime traffic.
Curiously, the US Navy hasn’t, as yet, placed itself in harm’s way in this mined, dangerous but vital waterway, and nor has Mr Trump tried to enlist the Russian navy, funnily enough.
At any rate, this a very different stance from that initially adopted by Mr Trump, who not so very long ago insulted the British prime minister on social media in the following childish terms: “The United Kingdom, our once Great Ally, maybe the Greatest of them all, is finally giving serious thought to sending two aircraft carriers to the Middle East. That’s OK, Prime Minister Starmer, we don’t need them any longer – But we will remember. We don’t need people that join Wars after we’ve already won!”
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Britain now has a chance to influence the direction of the war on Iran
Government to pledge £50mn support package to help energy costs
08:07 , Holly EvansMinisters will set out a £50mn package to help households facing spiralling energy costs in the wake of the Iran war.
The intervention, which has been confirmed by government officials, will mainly help around one million homes in rural areas of Northern Ireland who rely on heating oil.
The fuel is not protected by the energy price cap and its price per litre has doubled as a result of the stranglehold on oil leaving the Middle East since the US-Israeli war with Iran began.
Last week, Ms Reeves and Energy Secretary Ed Miliband met oil firm bosses and forecourt operators to warn them against profiteering.
Trump is a 'transactional presidency', minister say6s
07:54 , Holly EvansDonald Trump has a “transactional” approach to international affairs, a Cabinet minister said in response to the US president’s latest comments on Iran.
The US president has suggested the future of Nato is at stake if allies do not contribute to his mission to open the Strait of Hormuz to shipping.
Work and Pensions Secretary Pat McFadden told Sky News: “That’s the president right there. The quote that you’ve just given has summed him up.
“It’s a very transactional presidency and our job is to navigate this, to always remember that the friendship between the United States and the United Kingdom runs very deep.
“It’s a good relationship. It’s enduring and I think it will outlast all the personalities involved.”
Starmer to criticise Badenoch and Farage in Monday speech
07:42 , Holly EvansSir Keir Starmer will use his press conference on Monday to criticise his domestic political rivals Kemi Badenoch and Nigel Farage over their approach to the Iran crisis.
The Prime Minister is expected to say: “Moments like this also tell you about leadership… Now, there are others who would have made a different decision two weeks ago.
“They would have rushed the UK headlong into this war without the full picture of what they were sending our forces into and without a plan to get us out.
“That’s not leading, it’s following.
“My leadership is about standing firm for the British interest. No matter the pressure.
“And I believe time will show that we have the right approach. Right on the economy and the cost of living. Right on defence and energy.
“And right on this war, in the best interests of the British people.”
Minister plays down Trump's call for allies to contribute warships
07:32 , Holly EvansDonald Trump’s comments about the risk to Nato if allies do not contribute to the military effort to secure the Strait of Hormuz have been played down by a Cabinet minister.
The UK appears unlikely to agree to the US president’s call for allies to contribute warships to a mission to protect shipping passing through the waterway from Iranian attacks.
Work and Pensions Secretary Pat McFadden told Times Radio: “There’s a lot of rhetoric, always, in this presidency.
“Underneath that, there is a good and close relationship between the United Kingdom and the United States. I’m confident that will continue. We speak to one another all the time.
“But that doesn’t mean that we will always have to support every intervention and every action that the United States chooses to take.”
Starmer avoids calls from Trump to deploy warships to the Strait of Hormuz
07:26 , Holly EvansSir Keir Starmer on Sunday did not heed calls from Mr Trump to deploy warships to secure the Strait of Hormuz, a key oil trade route in the Middle East being blockaded by Iran.
Instead, Britain is currently mulling over the possibility of sending mine-hunting drones to the region amid worries of an Iranian build-up of explosives in the narrow sea passage.
In an interview with the Financial Times, Mr Trump reiterated his call for allied assistance in the Straight of Hormuz, telling the paper: “It’s only appropriate that people who are the beneficiaries of the strait will help to make sure that nothing bad happens there.”
He also said Nato faces a “very bad” future should its member states fail to help, adding: “We’ll see if they help us. Because I’ve long said that we’ll be there for them but they won’t be there for us.”
PM to pledge cost of living help after heating oil price spikes
07:18 , Holly EvansSir Keir Starmer will pledge to help households with the cost of living amid the energy price spike caused by the war in the Middle East, after he appeared to resist Donald Trump’s calls to send warships to the region.
The Prime Minister will on Monday say that helping households with living costs is “my first priority” as he announces a subsidy for those who use heating oil to warm their homes, after they faced price spikes caused by the war.
The Prime Minister’s heating oil announcement on Monday comes after Chancellor Rachel Reeves said Treasury officials have “found the money” to help the 1.5 million households relying on the fuel.
Heating oil is not protected by the energy price cap and its price per litre has doubled as a result of the stranglehold on oil leaving the Middle East since the US-Israeli war with Iran began.
Inside Downing Street, Sir Keir will say: “It’s moments like this that tell you what a Government is about.
“My answer is clear. Whatever challenges lie ahead, this Government will always support working people.
“That is my first instinct – my first priority – to help you with the cost of living through this crisis.”
The Prime Minister will also raise concerns about claims that suppliers of heating oil have cancelled orders and then jacked up prices.
UK could send minehunter drones to Strait of Hormuz and is ‘intensively’ looking at options to unblock key route
07:14 , Holly EvansBritain is weighing up sending minehunting drones to unblock Iran’s stranglehold over a key oil shipping route as the government looks “intensively” at what it can do to help reopen the Strait of Hormuz.
Energy secretary Ed Miliband said there was “a range of things” that the UK and its allies could do to secure the route, which has been blocked by Iran and has led to a surge in energy prices.
His intervention comes after Donald Trump called for allied warships to protect tankers in the region and help secure the waterway. In an appeal to nations affected by the price spikes on his Truth Social platform, Mr Trump said: “Hopefully China, France, Japan, South Korea, the UK, and others, that are affected by this artificial constraint will send ships to the area so that the Hormuz Strait will no longer be a threat by a nation that has been totally decapitated.
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UK ‘intensively’ looking at options to reopen Strait of Hormuz
