What’s the problem?

The current problems with heating oil are twofold: firstly,
the price of oil has shot up in the past month, jumping from under 40p a litre
to more than 70p in some cases. However, the price of crude oil – which is
refined to make heating oil – has only gone up by around 10%, leading to
allegations that oil companies are fixing their prices.

In some places, suppliers have been charging as much as £2 a
litre, while in others the price has stayed at around 50p. This has led some to
suggest a few companies might be using the cold weather and the subsequent
increase in demand as an excuse to put up prices.

Secondly, snow is stopping oil deliveries getting through to
some areas. The Government has admitted the situation could become ''very
serious'' if we get more snow, with many homes having to wait up to four weeks
for oil to be delivered.

Price fixing?

Energy Minister Charles Hendry has told MPs that the Office
of Fair Trading (OFT) will now belooking out for any alleged cases of
price-fixing ''I have spoken to the OFT about the price of oil, as the
enforcement of competition consumer law is a matter for them,” he said.''They
have assured me that they are keeping a very close eye on the situation and are
keen to receive evidence from members about any market abuse they are
experiencing.''

Deliveries

The Government said it was also talking to suppliers about
rationing oil so that the estimated 660,000 homes, many in remote areas, don’t
go without. Some people have called their oil supplier to be told they won’t
get a delivery for three or four weeks, at a time when temperatures are
unlikely to rise above freezing.

Energy and Climate Change Secretary Chris Huhne said he backed
Mr Hendry to deal with the shortage.

He told the House of Commons, "In the last 72 hours we
have been trying to ensure drivers can work longer, that they can get heating
oil to the homes that need it.

"The energy minister has been in constant discussions
looking at any way in which those who need heating oil, and are short of
heating oil, get it. That is absolutely essential.”

The Government has also considered rationing to ensure there
is enough oil to go round. However, Pat Glass, the Labour MP for North West
Durham, said many oil suppliers were refusing to deliver less than 1,000 litres
and accused them of "utter exploitation".

Watch out for thieves

Rural insurer NFU Mutual has warned that rising prices and
predictions of fuel rationing could lead to a rise in fuel thefts in areas
where people rely on heating oil.

When it conducted its annual Rural Crime Survey earlier this
year, domestic fuel was sixth on the list of the 10 items most commonly stolen
from the countryside. With thousands of homes predicted to run short of heating
oil over the Christmas period, the insurer is concerned the trend will escalate
as heating oil becomes a lucrative commodity for thieves.

Local offices across the UK have reported incidents of
heating oil and diesel being stolen shortly after delivery, and it would appear
that thieves are even following tankers from the depot and making a note of
where fuel is delivered. This enables the thieves to return under cover of
darkness and help themselves to the contents of full tanks.

Be security conscious NFU Mutual suggests householders deter
thieves from entering their property by installing and using lockable gates and
by maintaining boundaries and perimeter fencing. It also suggests fitting a
locking cap to your tank and planting shrubs or installing fences to hide
exposed domestic heating oil tanks from opportunist thieves.

Worryingly, the insurer warns that if thieves have already
stolen fuel from your tank they may return to steal any replacement oil you
order – so be especially vigilant following any oil delivery.