The UK government's £50mn ($66mn) subsidy to help some low-income households pay for their heating oil costs could be extended to LPG at the discretion of local authorities, according to sources.
The Labour government has come under pressure to provide long-term support to rural households.UK energy regulator Ofgem does not cap LPG and heating oil prices, meaning that the consumers of those fuels are now exposed to significantly higher energy bills.
Northwest European large cargo propane benchmark hit a four-year high at $828.75/t on 16 March, marking a 47pc increase since the conflict started. Europe does not take LPG from the Middle East, but the de-facto closure of the strait of Hormuz — the main route for Mideast Gulf oil exports — is intensifying competition from Asia for US cargoes, a critical source of supply for Europe.
Around 200,000 households in the UK use LPG for heating, while 1.5mn use heating oil, according to the industry association Liquid Gas UK.
The government scheme, which focused on heating oil but can also include LPG, is due to run from 1 April, with £27mn allocated to England, £17mn to Northern Ireland, £4.6mn to Scotland and £3.8mn to Wales.
