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<p>The Government has carefully considered the introduction of a price cap to help
domestic fuel customers with high fuel prices, however analysis indicates that a cap
would not be in the long-term interests of consumers.</p><p>The existing gas and electricity
price cap was designed to protect consumers on default tariffs from the loyalty penalty,
which the Competitions and Markets Authority warned was causing customers to be overcharged.
The structure of the heating oil and LPG markets is different and imposing a price
cap below wholesale costs would drive companies out of the market, reducing competition
and possibly result in supply shortages.</p>
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