£3.8 million to help Welsh families struggling with soaring heating oil costs
The cost of kerosene, used for heating oil, has become significantly higher than crude oil prices in recent weeks
Last updated 16th Mar 2026
Families across Wales are set to receive a share of £50 million from the UK Government to help manage increasing heating oil costs, which have surged due to the conflict in the Middle East.
The cost of kerosene, used for heating oil, has become significantly higher than crude oil prices, leaving those who rely on it for heating, exposed to sharp price hikes.
Unlike gas and electricity customers, those using heating oil are not protected by the energy price cap, resulting in immediate increases in costs for these consumers.
The Chancellor announced targeted financial support for low-income households in rural areas who must pay upfront lump sums to keep their heaters and water systems running, especially as winter closes.
The funds will be allocated based on census data in Wales and distributed directly to the Welsh Government to assist vulnerable households.
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.”
Secretary of State for Wales Jo Stevens said:
“Wales has a high number of households who rely on heating oil and are feeling the pressure of rising bills.
“I know how worrying that is for families which is why we are working with the Welsh Government to provide an extra £3.8 million to support the people who need it most.”
The Chancellor has also encouraged vigilance from the Competition and Markets Authority regarding unfair price increases and promoted the sharing of any price manipulation evidence.
Vulnerable households facing financial difficulties due to rising heating oil prices are advised to reach out to their local authorities for support options.