Heating Oil Prices Up 80% in Northern Ireland, Hitting Childminders

Home heating oil in Northern Ireland costs about 80% more than it did before the war in Iran began, according to Raymond Gormley, head of energy at the Consumer Council NI (CCNI). On 24 September, the average price of 500 litres stood at £561.83.

"At the minute, 300 litres is about £347 and before the war began it was £202. That just shows you, that's £146 of a difference for 300 litres," Gormley told BBC News NI.

"It's really hard for people to find that 80% increase in such a short space of time because, as we know, budgets are hard pressed as it is," he said.

The price spike lands hardest on Northern Ireland because 62.5% of its homes heat with oil — the highest proportion of the UK nations. Unlike gas or electricity, the heating oil market is unregulated, so global price rises pass through to consumers almost immediately.

'A severe financial and operational burden'

Rachel Jeffers, a registered childminder from Stewartstown, County Tyrone, said her heating oil cost has "doubled" since last year. Last week she bought 500 litres for £560. That did not fill her tank — she considered the price too high to complete a full fill.

"It's a severe financial and operational burden on all registered childminders because as well as the prices of the oil, there's massive increases in the food bills, the insurance," Jeffers said. "That's all increased massively and a lot of the parents are saying if we're increasing our rates it's a financial burden on them."

Jeffers minds one child after school alongside her own six-year-old daughter and seven-year-old son, plus three children under school age all day. During winter she runs the heating all day to keep the house warm for the young children. "Through the summer we were still using it because our hot water runs off our heating oil," she said.

She has turned off the heating earlier in the day than usual. She has not yet raised her childminding fees, but the move is under discussion. "The guilt is there also because whenever you start minding, the families nearly become an extension of your family, so you're feeling for them," she said.

The pressure reaches beyond her business. Jeffers has reconsidered whether her children can keep their piano lessons and football. "They do piano, they do football, and you're sitting and questioning is it worth going to these? And then that's impacting on them and they're out and they feel like they're missing out because they're seeing their friends still going to it, but you obviously then can't afford to do everything," she said.

She described the cost of home heating as "always on the back of your mind" — a case of "you're sitting watching every penny."

Where prices go next

Gormley said the outlook "all depends on what happens in the Middle East."

"If there is peace discussions and there is sort of a truce, you'll see prices coming down, slowly be that, but they'll come down. If not, if war continues, prices will only go one way," he said.

He noted oil prices are "really headline driven" and had "come down slightly in a week" — but added: "As you know, prices go up a lot quicker than they come down."

His advice to consumers: track the CCNI's weekly oil price checker, which posts typical prices for 300, 500 and 900 litres every Thursday, and compare suppliers before buying. "If you're going to wait and see if your price is going to come down, well then keep an eye on the daily prices," he said. "And then you get to a point where you think you're going to buy, price around a few oil suppliers because there is a bit of variancy on prices there."

Stormont's £100 voucher scheme

Applications for the Home Heating Oil Support Scheme opened on 9 September. The Stormont scheme, first announced in March, gives eligible households a £100 voucher toward oil costs. About 340,000 lower-income households were expected to qualify.

As of midday on 23 September, the Department for Communities had received 123,987 applications. Successful applicants should receive a payment card within 10 working days. The scheme stays open until 31 March 2027 and covers households with a combined income of £30,000 or less, or those on certain benefits including pension credit and PIP. The department expects to process at least 75% of applications automatically; some applicants will need to supply additional evidence of eligibility.

For childminders like Jeffers, the £100 voucher covers less than a fifth of a single 500-litre order. Unless a Middle East truce pulls prices down, fee increases — and squeezed family budgets on both sides of the childminding relationship — look increasingly hard to avoid.