LONDON, March 16 (Xinhua) -- British Prime Minister Keir Starmer said on Monday that the government will provide 53 million pounds (70.38 million U.S. dollars) to help vulnerable households cope with rising heating oil costs following a surge in energy prices linked to the conflict in the Middle East.
Starmer said the support would target low-income households in rural communities that have been particularly affected by the recent spike in oil prices.
In Britain, the Office of Gas and Electricity Markets (Ofgem) sets an "energy price cap" for gas and electricity, which limits the maximum amount suppliers can charge households. However, heating oil is treated as a market commodity, and its price fluctuates with international oil markets, so it is not subject to a price cap.
Oil prices surged as global markets opened on Monday amid growing concerns that escalating tensions in the Middle East could disrupt energy supplies and impact global financial markets.
Brent crude, the international benchmark, rose to 105.61 U.S. dollars per barrel in early Asian trading, while U.S. benchmark West Texas Intermediate climbed to 101.52 dollars. Brent has gained more than 40 percent since joint U.S.-Israeli strikes on Iran on Feb. 28.
The issue is particularly acute in Northern Ireland, where about 500,000 homes rely on heating oil, accounting for nearly two-thirds of all households. About 3 percent of households in England and Wales and around 5 percent in Scotland use heating oil as their only source of central heating, the BBC reported. ■