The rise in oil and fuel costs and the implications for farms and estates

While agricultural red diesel has risen sharply, it is heating oil where the biggest impact of the recent Middle East tensions has been seen.

As a kerosene product, heating oil is driven by the global aviation fuel market rather than crude oil, with soaring wholesale prices feeding quickly into energy costs – and landowners who rely on oil-fired heating really feeling the effects. The UK & Ireland Fuel Distributors Association confirmed in April 2026 that wholesale jet fuel prices have more than doubled, reaching a three-and-a-half-year high.

The consequences of oil and diesel theft go way beyond the cost of what has been taken. Operations can grind to a halt, tanks and pipework can be left damaged, heating supplies interrupted and pollution risks created.

A rural risk
Most oil tanks are situated with practicality in mind, not security. A location that works well for the farm or estate, such as tucked behind an outbuilding or close to an access track, can work just as well for a thief.

Larger and more remote locations can be particularly vulnerable, with more buildings to monitor, seasonal spikes in activity, more public access routes and corners that rarely get visited.

Heating oil tanks in on-site holiday lets or estate cottages can also be easy targets, especially if they’re located away from the main steading and not checked regularly.

The true cost
The cost of replacing stolen fuel or oil is only part of the picture.

Repairs to damaged tanks, cut pipes, broken locks or forced entry all add to the bill, while vehicles or machinery running low on fuel can bring operations to a standstill.

For oil-heated properties, the impact can be immediate. Residents or visitors can be left without heating or hot water, leading to emergency call-outs to help rectify the situation.

There is also the environmental risk as a theft attempt can lead to oil escaping into soil, drains or nearby watercourses. In many cases, the clean-up costs can be far greater than the value of the stolen fuel.

Tank security
A good place to start is to look at where fuel and oil are stored and asking if it’s secure enough.

Tanks should be somewhere easy to keep an eye on but away from roads or access paths.

Steel tanks can be harder to drill through or move than some plastic tanks, while secure cages can add another layer of protection.

Locks, anti-siphon devices, tank alarms, security lighting, CCTV, gates and physical barriers can all make life harder for thieves too.

Make sure tanks are in places where they can’t get damaged either. Impact from vehicles or machinery can cause them to weaken over time, making it easier for thieves to tamper with.

Get into the habit of monitoring fuel and oil levels. Regular gauge checks can help spot sudden drops or signs of tampering, while tank monitors and alarms can send alerts if levels fall unexpectedly. Keeping clear records may also help if you need to report a theft to the police or make an insurance claim.

If holiday lets are heated by oil, have a schedule for regularly checking the property and tank, make sure someone is accountable for flagging problems, and ensure guests are told what to do if they spot something suspicious.

Get protected

If heating oil or fuel is stolen from your property, insurance could help cover the cost. Depending on your policy, this might include the value of the stolen fuel, any damage left behind by the thieves, and repairs to tanks, pipes, locks or anything else that was broken in the process.

Where the right cover is in place, insurance may also help with wider consequences, such as business interruption if machinery, vehicles or premises cannot be used as normal. For farms and estates with multiple locations, let properties, workshops or commercial activities, this can be just as important as replacing the fuel.

However, the level of protection will depend on the policy wording. There may be limits on the amount of oil or fuel covered, conditions around how and where it is stored, or requirements relating to locks, compounds, alarms, bunding or regular inspections.

An oil leak that impacts the surrounding land, drains or nearby water can be expensive to deal with so check whether your policy includes environmental liability cover. This can help with clean-up costs, any regulatory requirements, specialist contractors and claims from third parties.

Protecting your supply
Most rural businesses rely on fuel and heating oil to run their daily operations.

Theft is still a real problem, even in rural areas, and with prices currently so high, it’s worth taking extra steps to protect yourself. Time spent looking at how you store, secure and insure your oil, can help you spot any weak points and mean you’re in a much better position if something does go wrong.

ENDS
IMPORTANT NOTE: This information sheet has been prepared by Lycetts and reflects information reviewed by Lycetts at the time of its publication.

Accordingly, account must always be taken of any relevant changes in law, policy or other circumstances since that time. It is for general information only and must never be relied upon as any substitute for appropriate professional advice, which should always be taken in any situation in which financial or other interests may be at stake.
This content is for general information purposes only and should not be construed as financial or insurance advice. Lycetts and its employees accept no liability for any errors or omissions.