Supply shortages and soaring oil prices leave customers facing higher costs
Customers of a Norfolk-based heating oil supplier have had their orders cancelled or repriced after global fuel markets were shaken by the escalating conflict in the Middle East. The disruption has pushed up wholesale oil prices and exposed the vulnerability of households in rural parts of the UK that rely on heating oil rather than mains gas.
Rural households hit by sudden price surge
Goff Petroleum, headquartered in Wymondham, Norfolk, delivers kerosene heating oil to homes and businesses across East Anglia and parts of south-east England.
The company has informed customers who placed orders before the conflict intensified two weeks ago that it cannot fulfil those deliveries at the originally agreed price. Instead, customers have been offered several options:
- Pay an updated price reflecting the current global cost of oil and receive delivery this month
- Cancel the order and receive a full refund if payment was made in advance
- Keep the original price but wait until the company can source fuel at pre-conflict levels
Some customers say the revised cost of heating oil has doubled compared with the price quoted when they ordered.
Rose Levien, who lives in the village of Heydon near Reepham, said the change had left her family in a difficult position.
“We are a family of five living in a rural area and rely on oil for heating and hot water,” she said.
“We are already low, and now with this situation I’ll have to completely turn off our heating and hot water as we simply cannot meet the request of Goff to pay the rate today. It seems extremely unreasonable considering I ordered it over two weeks ago.”
Company cites global market turmoil
In a statement on its website, Goff Petroleum said it was experiencing “significant supply problems” due to the ongoing war in the Persian Gulf.
“The volatility of the global kerosene market has led to unprecedented price inflation and shortage of supply,” the statement said.
“We only store one and a half to two days of product and rely on daily collections from refineries bought at today’s prices. As we have no ability to control the price, we find ourselves in an unprecedented situation.”
The company added that it would “do everything we can to maintain supply to our loyal and valued customers”.
Goff Petroleum supplies heating oil to more than 70,000 properties including homes, farms, schools and businesses across the region.
Global oil markets under pressure
The disruption follows the effective closure of the Strait of Hormuz, one of the world’s most critical oil shipping routes. Around a fifth of global oil exports typically pass through the narrow waterway.
At the same time, several Gulf states have reduced oil production, further tightening supply.
These developments have pushed the price of Brent Crude close to $120 per barrel earlier this week. The benchmark had not exceeded $100 since the early stages of Russia’s full-scale invasion of Ukraine in 2022, although prices have since fallen back below that level.
Rural Britain particularly exposed
Around 1.5 million homes in the UK rely on heating oil rather than mains gas, according to government and industry estimates. These properties are typically located in rural areas where the national gas grid does not reach.
Seven of the ten areas where oil heating is most common are located in the east of England, according to data from the 2021 Census.
Unlike households supplied by gas or electricity, customers who rely on heating oil are not protected by the government’s energy price cap. Prices are instead determined by global fuel markets and can change rapidly.
Heating oil prices are closely linked to the European jet fuel market, where roughly 40% of supply is imported from the Middle East. The wholesale price of jet fuel has more than doubled recently, reaching its highest level in three and a half years.
Fears of wider economic impact
Analysts warn the shock could have wider economic consequences if supply disruption continues.
The Oil Market Journal said the current situation resembles the kind of economic shock seen during the Covid-19 pandemic.
“We expect a stock market crash, oil prices to spike to $150 per barrel, followed by a 20% global economic shutdown,” the publication said in a recent assessment.
Outlook for heating oil customers
For many households in rural Britain, the crisis highlights the risks associated with heating systems that depend on volatile global fuel markets.
If supply constraints persist, customers may continue to face higher prices or delays in deliveries as suppliers struggle to source fuel at sustainable costs.
Thomas Hardy is a contributor to OE Mag, covering news, politics, business, technology, sport, entertainment, and lifestyle. He focuses on clear, accurate reporting and useful information that helps readers stay informed about current affairs and developments that matter to them. His work highlights relevant stories, emerging trends, and key issues, presenting them in a balanced, accessible, and reader-friendly way.