RSN Warns Rural Households Hit Hardest By Oil Price Surge

The Rural Services Network (RSN) has warned that rural households and businesses are particularly exposed to rising oil prices as global energy markets react to escalating tensions in the Middle East.

Reports this week indicate that heating oil prices have risen sharply, with wholesale prices fluctuating significantly. For many rural households that rely on heating oil, these increases can have an immediate impact on household budgets.

A significant proportion of rural homes are not connected to the mains gas network and rely on alternative fuels such as heating oil, LPG or solid fuels to heat their homes. Around 25% of homes in rural areas – approximately 1.4 million properties – are off the gas grid, leaving them far more exposed to fluctuations in global oil prices than households connected to mains gas.

This issue highlights a longstanding structural challenge for rural communities. In many areas, residents and businesses have fewer energy and transport alternatives available.

Many rural properties are older and harder to retrofit with alternative heating systems. At the same time, rural economies are heavily dependent on transport and fuel. Farms, tourism businesses, local manufacturers and service providers all rely on road transport to operate.

Limited public transport options further increase this exposure. Research shows that in villages, hamlets and isolated rural areas public transport accounts for less than 1% of journeys, meaning private vehicles are essential for accessing employment, education, healthcare and other services.

As a result, increases in petrol, diesel and heating oil prices can quickly feed through into higher operating costs for rural businesses and increased pressure on household budgets.

Unlike mains gas or electricity, off-grid heating fuels such as heating oil are not subject to a domestic energy price cap. This means rural households must often absorb sudden price spikes when they occur.

The Rural Services Network says the situation underlines the importance of ensuring national policy fully recognises the realities faced by rural communities.

Kerry Booth, Chief Executive, Rural Services Network:

Rural households are uniquely exposed to oil price shocks. Many homes are not connected to the mains gas network and rely on heating oil to keep warm, so sudden price rises can hit them immediately. At the same time, in many rural communities a car is not a luxury, it can be the only way to get to work, school or the GP, so rising fuel costs quickly affect both household budgets and rural businesses. When energy prices surge, rural communities are often first to feel the impact. This is why our Delivering for All roadmap is so important. If we want a fair and prosperous future for every part of the country, national policy must recognise the realities faced by rural communities and ensure they are not disadvantaged simply because of where they live.

_Sources:

_{Delivering for All – A Roadmap for Rural Prosperity, Rural Services Network.}

_{State of Rural Services 2025, Rural England C.I.C.}

_{The Challenges for Rural Electrification, Countryside and Community Research Institute; Rural England C.I.C and NICRE.}