Addressing MPs, Reeves said: “I recognise that households who use heating oil face unique challenges, and so I have asked the Financial Secretary to the Treasury to lead discussions with officials and with rural and Northern Irish MPs to explore further action that we can take.”
It came after watchdog the Competition and Markets Authority (CMA) warned the war was “putting pressure on heating oil prices”.
Acting executive director for consumer protection Emma Cochraine warned suppliers against profiteering by hiking the price of heating oil for those who have already placed orders.
“We won’t hesitate to take action if we suspect that consumer or competition law is being broken,” Cochraine warned.
Reeves said on Monday she has asked the CMA to “be vigilant across prices including essentials like road fuel and heating oil”.
Conservative Party Leader Kemi Badenoch raised concerns about exploitative heating oil suppliers breaking contracts with customers to push up prices.
She said the market is “beset with bad practice at the best of times” but the situation had become “critical”.
She called for the CMA to go further and launch an investigation into the heating oil market.
UKIFDA has been approached for comment.