Treasury holds talks on soaring heating costs as some families 'cannot afford oil'

Northern Ireland MPs will hold talks with a Treasury minister on Wednesday to discuss possible responses to the soaring cost of home heating oil.

Almost two-thirds of homes (62.5%) in Northern Ireland use oil for heating - the highest proportion among UK nations.

Industry data suggests heating oil prices in NI have more than doubled since the US attack on Iran and the heating oil sector is unregulated meaning customers have been immediately exposed to those price rises.

Samantha Gallagher from the Rural Community Network said some families in areas which are particularly reliant on oil have run out of it and are being forced to wait until the price comes down as they "simply cannot afford it".

The network, which is based in Cookstown, holds monthly meetings with the Housing Executive for tenants in rural areas and those who own their homes privately.

"During the rural residents forum meeting we had in the last week, one of our residents informed us that there was a spike in the Causeway Coast and Glens area from £285 to £509," she told BBC News NI.

"We are hearing that these spikes in cost regarding the price of oil is really impacting rural families. They are already operating with a very limited financial cushion so when the price of oil jumps overnight it can create real anxiety," she added.

Gallagher, who is from County Fermanagh, said while she welcomed the talks, she hoped that any support mechanisms would reflect the fact that rural homes in Northern Ireland in particular have fewer alternatives to oil, as a lot of areas don't have gas networks.

"It's the rural premium generally - which is sometimes left out of policy discussions. We don't have a choice but to use our own vehicles as the public transport in some areas is limited."

In contrast households with gas heating have, for now, been protected from price rises because of the way that market operates and is regulated.

MPs from some rural areas of Britain with a relatively high prevalence of oil heating will also be at the meeting.

It comes after the chancellor said some heating oil companies are using the crisis in the Middle East "as an opportunity to rip off consumers".

Responding the huge price increase, Rachel Reeves confirmed that the government had asked the Competitions and Markets Authority (CMA) to look into the issue.

"You've got price gouging, and the way to deal with that is ensure that customers are treated fairly and that companies are not ripping off their customers", she said.

In response, the UK and Ireland Fuel Distributors Association (UKIFDA), which represents heating oil suppliers, said its members were dealing with an "exceptionally difficult time".

"We have spoken to many distributors who, despite the very large price swings and demand, are honouring orders as quickly as they can. We know that the CMA is monitoring this, and we support this approach," the organisation said in a statement.

Meanwhile Stormont's Finance Minister, John O'Dowd, has called on the chancellor to support consumers in Northern Ireland.

O'Dowd said the Stormont Executive did not have the financial "firepower" for a meaningful support package.