PRIME MINISTER Sir Keir Starmer has warned fuel companies that the government will step in if they are found to be exploiting soaring oil prices at the expense of ordinary households, during a visit to Northern Ireland on Wednesday (11).
The prime minister's remarks came as heating oil prices in Northern Ireland have more than doubled since the US attack on Iran, heaping pressure on families at a time of rising living costs. Almost two-thirds of homes in Northern Ireland (around 62.5 per cent) rely on oil for heating, the highest proportion of any UK nation.
"We will not tolerate profiteering or unfair practices," Sir Keir said. "If companies fleece customers or rip them off we will not hesitate to step in."
He said prices must be "fair, transparent and justifiable and not inflated at the expense of working people," and confirmed the government had already asked the Competition and Markets Authority (CMA) to look "urgently at the extortionate prices" of fuel.
The CMA said it would engage with suppliers and intermediaries to assess whether there were consumer protection concerns. It said it would look specifically at whether existing orders were being cancelled so that customers could be offered new quotes at higher prices.
Raymond Gormley of the Consumer Council for Northern Ireland told BBC that his organisation had received some "very concerning" reports of exactly that practice.
Despite the tough talk, the prime minister faced pressure from local party leaders to go further and provide direct financial support for struggling households. Northern Ireland MPs met Treasury officials on Wednesday to discuss additional help, with some afterwards expressing disappointment at the lack of concrete commitments.
The visit came as oil prices climbed back above $100 a barrel on Thursday (12), rising more than six per cent in a single session after Iranian boats were reported to have attacked two fuel tankers in Iraqi waters. Crude prices are now up more than 32 per cent since the start of March.
The broader economic impact was visible on financial markets, with London's FTSE 100 falling 0.4 per cent as investors grew more anxious about inflation and scaled back expectations of Bank of England rate cuts.
"The longer the disruption goes on, the greater the impact on energy prices and in turn global inflation. This then has implications for interest rates too," said Danni Hewson, head of financial analysis at AJ Bell.
Sir Keir is due to travel to Cork on Thursday for a UK-Ireland summit with Taoiseach Micheál Martin, where the two leaders are expected to discuss cooperation on infrastructure, clean energy and skills.
(with inputs from Reuters)
