Businesses have been accused of “price gouging” in the wake of the US-Israel war on Iran, which has raised fears of an extended impact on the oil and gas market.

“The CCPC has been contacted by a number of consumers querying the legality of price increases in home heating oil and alleging ‘price gouging’,” the watchdog said in a statement on Wednesday.

“The law on price increases is clear. Companies can set, and increase, their own prices but they must do so independently. Prices must be clearly communicated to consumers in advance of any sale.  

“There is no legal obligation on companies to set their prices at a level that consumers will consider fair. However, equally, consumers can and should take their business elsewhere where they are treated poorly.

“If a company has agreed a sale with a consumer and accepted payment, then they should fulfil the terms of the order.”

Peter Burke, the minister of enterprise, tourism and employment, said he had been “assured by the CCPC that these complaints will be carefully and urgently assessed”.

The minister said: “Our consumer watchdog can avail of a range of powers to investigate and prosecute where clear breaches of the law are evident.

“The CCPC can impose fines of up €10 million in certain circumstances of breaches, or 10 per cent of a company’s turnover.

“A confidential whistle-blowing service is also available for reports of suspected cartel behaviour.”

He said he would meet industry representatives and suppliers in the energy market today “to discuss my concerns around the recent sharp increases in home heating oil and fuel prices, which do not appear to correspond with wholesale trends”.

“All businesses operating in this country must comply fully with the law, and the CCPC will be monitoring developments closely,” he stressed.

Northern Ireland’s economy minister, Dr Caoimhe Archibald, also said Wednesday that she had “constructive” meetings with the Irish and UK energy ministers on the matter.

She said: “Let me be clear, any unjustified hike in costs for consumers is unacceptable. 

“I have instructed my Department to remind all suppliers and retailers of the need to behave in a responsible manner, and we will be working with our agencies to ensure transparency on pricing.”