Heating oil price rockets

The price of kerosene oil has risen by a third

Uncertainty over a possible war with Iraq is already hitting hundreds of thousands of household budgets across East Anglia.

The price of kerosene oil, which many people in rural areas rely on to heat their homes, has rocketed as the price of crude oil rose to a two-year high.

Two weeks ago the heating oil cost 17 pence a litre.

Now it is 25 pence, pushing up the price of a 1,000 litre delivery from £170 plus 5% VAT to £250 plus VAT.

Tension in the Middle East always has an effect on prices

Chris Trenerry, of CPS Fuels

Chris Trenerry, of CPS Fuels in Long Stratton, Norfolk, says prices are at a peak.

The depot, with 30,000 customers in Essex, Cambridgeshire, Norfolk and Suffolk,delivers 300,000 litres to homes and businesses every day.

"We saw an eight-week strike in Venezuela which caused a serious reduction in production," said Mr Trenerry.

"We have seen low stocks in the States because of the military build-up and the amount of fuel they are buying - and tension in the Middle East always has an effect on prices."

Suppliers fear the price could rise by another five pence a litre.

The last time prices peaked at around 30 pence a litre was during the Gulf War in 1991.