20th October 2026
For many households in Caithness and the wider Highlands, heating oil is not a luxury or an occasional purchase. It is what keeps the house warm through the long northern winter.
That makes the recent volatility in heating oil prices particularly worrying. A household can find itself facing a bill of hundreds, sometimes more than a thousand, pounds simply to replenish its tank. And unlike households on standard gas and electricity tariffs, heating oil customers have no equivalent Ofgem price cap protecting them against sudden increases.
The question is not simply why heating oil has become so expensive. It is whether households in some of Scotland’s coldest and most remote communities are receiving a fair level of protection.
A longer winter means a bigger heating bill
Location matters enormously when it comes to heating a home.
In Caithness, winter can arrive early and linger into spring. Cold winds, damp weather and low temperatures can mean that homes need heating over a longer period than many households in southern England might expect. The Met Office’s climate data for northern Scotland records average daily maximum temperatures of only around 5–6°C in January and February across its northern Scotland district.
The heating season is not defined by a single date. It depends on the weather, the condition of the property and the needs of the people living in it. But for many northern households, the practical reality is that heating is needed for a substantial part of the year.
This has financial consequences. A household that needs to heat its home for longer will generally use more fuel, even if its boiler is efficient and the property is reasonably well insulated.
There is also an important human consideration. Older people and those with health problems may need a warmer home, while families with young children cannot always reduce heating without consequences. Advice to turn down the thermostat or wear another layer may help some households, but it is not a complete answer for everyone.
For someone living in Caithness, the problem is therefore twofold: the price of each litre of oil and the number of litres needed to get through the winter.
A price shock that households cannot easily avoid
The Competition and Markets Authority (CMA) examined the heating oil market after international conflict and disruption in the Middle East caused prices to surge during 2026. Its findings showed that average retail heating oil prices had risen by as much as 92% at their peak compared with normal levels.
The CMA concluded that the increases were largely driven by higher wholesale costs rather than evidence that suppliers had generally made excessive profits from the crisis. That distinction matters. The problem cannot simply be solved by blaming local oil companies when the price of the product itself has risen sharply.
Nevertheless, the CMA identified gaps in consumer protection. Some customers had orders cancelled when prices rose, leaving them having to arrange replacement supplies at higher prices. The watchdog has secured compensation for affected customers in cases where suppliers had agreed to remedy problems.
For households in remote parts of Scotland, finding another supplier may not be as straightforward as it sounds. Delivery arrangements, minimum order sizes, distance and the number of suppliers serving a particular area can all limit the choices available.
Customers can also face a difficult decision about when to order. Buying early may mean paying a high price just before the market falls. Waiting in the hope of a reduction risks running low when the weather turns colder or delivery slots become harder to obtain.
Why is there no price cap?
Households using mains gas and electricity have protections under the energy regulatory system. Heating oil customers do not have an equivalent price cap.
That does not mean every heating oil price is unfair, or that a cap would necessarily be the right answer. Wholesale costs can change rapidly, and suppliers must be able to cover the cost of purchasing, storing and delivering oil.
But the difference in protection is striking. A household connected to the gas network has a regulated framework around its tariff, while a neighbour in a rural area who relies on an oil tank can be exposed much more directly to changes in the market.
The UK Government announced on 13 October that it would take forward plans for stronger regulation of the heating oil market. The proposals are intended to improve consumer rights, pricing transparency and the handling of cancellations, working with the devolved governments, Ofgem and industry representatives.
These are welcome steps, but they are not a promise to cap heating oil prices. Better regulation can help prevent unfair treatment and make it easier to compare suppliers. It cannot, by itself, prevent a global oil-price shock.
What help is available in Scotland?
The Scottish Government has extended its Scottish Emergency Heating Oil Scheme, administered through Advice Direct Scotland. It is aimed at eligible low-income households, including people receiving means-tested benefits and those experiencing financial hardship or at risk of rationing essential heating.
That support matters, but eligibility conditions mean it will not necessarily reach every household struggling with a large bill. Some people may have modest savings or an income just above the qualifying threshold while still finding a sudden oil purchase difficult to afford.
A further question is whether support should reflect the particular circumstances of remote communities. A household in Caithness may face a longer heating season, limited alternatives to oil and the additional costs associated with rural living.
Support could take account of unavoidable heating needs and local circumstances, while remaining targeted at those who genuinely need help.
What more could governments do?
The first priority should be to make the market easier to navigate. A reliable price-comparison service covering Scottish suppliers could help customers see the prices available for their postcode and order size. Clear rules on cancellations, delivery commitments and quotations would give households greater confidence when placing an order.
The second priority should be targeted assistance when prices rise exceptionally sharply. That might include help for households in financial hardship that depend on heating oil for essential warmth. Any scheme would need transparent eligibility rules and safeguards to ensure public money reaches those who need it.
There is also a case for reviewing whether support adequately reflects the extra burden of longer heating seasons in remote and colder areas. This need not mean paying every household in northern Scotland the same amount. It could mean recognising that the same increase in the price per litre can have a greater impact on a household that must heat its home for more months.
Longer term, improving insulation and replacing inefficient heating systems can reduce fuel consumption. But that transition takes time and investment. Households cannot simply replace an oil boiler overnight, particularly where the property is remote, the cost is substantial or alternative heating systems are difficult to install.
A longer-term plan must therefore support improvements without abandoning people who will continue to depend on heating oil for years to come.
Warm homes should not depend on postcode
Heating oil prices are influenced by global markets, and no government can guarantee that they will always remain low. Nor would it be sensible to promise a universal subsidy regardless of household circumstances.
But the absence of a price cap, the size of individual orders and the length of the heating season combine to make the problem especially serious for some rural households.
For Caithness and the wider Highlands, the issue is not simply that winter can be colder. It is that the need for heat lasts longer, alternatives may be limited, and the cost of replenishing a tank can arrive as a large and unpredictable bill.
Stronger consumer protection is a necessary start. Better price information and targeted financial help would also make a difference. In the longer term, warmer and more energy-efficient homes should reduce the amount of fuel households need to buy.
People living in northern Scotland should not have to choose between keeping their homes warm and keeping their household finances afloat. If governments are serious about a fair energy system, the needs of households that depend on heating oil must be part of the answer, not an afterthought.
Sources
Met Office: Northern Scotland climate
https://www.metoffice.gov.uk/binaries/content/assets/metofficegovuk/pdf/weather/learn-about/weather/regional-climates/northern-scotland_-climate-met-office.pdf
Competition and Markets Authority: UK heating oil households need stronger protections
https://www.gov.uk/government/news/uks-heating-oil-households-need-stronger-protections-says-cma
UK Government: Stronger protections for heating oil customers, 13 October 2026
https://www.gov.uk/government/news/stronger-protections-for-heating-oil-customers
Consumer Scotland: Statement on regulation of the home heating oil market
https://consumer.scot/news/statement-on-the-home-heating-oil-market/