Petrol prices have exceeded the 150p-per-litre mark for the first occasion in almost two years, intensifying the debate over whether petrol stations are exploiting soaring oil costs for profit. The average price for standard petrol climbed above the symbolic threshold on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The steep rises, which have added nearly £10 to the cost of filling a typical family car in only a month, follow military tensions in the Middle East that erupted a month ago when the US and Israel conducted strikes on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of excessive profit-taking, instead blaming ministers for wrongly accusing at petrol station owners battling restricted supply networks.
The 150p barrier breached
The milestone represents a significant moment for British motorists, who have seen fuel costs rise consistently since the Middle East tensions began. For a typical family car requiring a 55-litre fuel tank, drivers are now encountering costs exceeding £82 for a complete tank of unleaded petrol—nearly £10 more than just four weeks earlier. The RAC has characterised the breach of 150p as an unwanted milestone that will sting households already dealing with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families commence planning their Easter trips and summer holidays, when demand for fuel conventionally surges.
Whilst the present prices remain below the peak levels recorded after Russia’s attack on Ukraine in 2022, the rapid acceleration has revived concerns about cost and availability. Diesel has fared even worse, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis shows that petrol has increased 17p per litre in the same period. With distribution networks already strained and some petrol stations reporting temporary pump closures due to exceptional demand, the mix of higher prices and possible supply problems threatens to worsen challenges for motorists throughout the nation.
- Unleaded fuel now 17p costlier per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since tensions began
- Filling up a family car costs approximately £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retailers challenge against government accusations
The growing row over fuel pricing has revealed a growing rift between the government and forecourt operators, who argue they are being unjustly blamed for circumstances they cannot influence. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers amid the cost escalation. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the recent spike, leaving scant scope for profiteering even if operators were inclined to do so. This mutual recrimination reflects the political importance surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The Competition and Markets Authority has stated it will strengthen monitoring of the petrol market, indicating that regulatory oversight will increase. Yet retailers argue this increased scrutiny misses the core issue: they are responding to real supply limitations and wholesale price fluctuations, not creating false shortages for profit. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and value-added tax, possibly gaining more from the price surge than fuel retailers. This observation has introduced an awkward element to the discussion, suggesting that criticism from Westminster may disregard the state’s own financial interests in higher fuel prices.
Asda’s defence and supply pressures
As the UK’s second-biggest fuel supplier, Asda has positioned itself at the heart of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have surged significantly, with demand substantially outstripping available supply. He conceded that a small number of pumps have briefly stopped operating due to unusually high customer demand, but maintained that Asda has not closed any forecourts entirely. The company expects affected pumps to resume service following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations underscore a key difference between profiteering and supply management. When demand increases sharply, as took place in the wake of the regional tensions in the Middle East, retailers may find it challenging to maintain standard inventory levels despite making every effort. The Association of Petrol Retailers backed up this claim, admitting sporadic supply problems at “a handful of forecourts for one retailer” but asserting that supply across the UK is functioning smoothly. The body advised drivers that there is no need to modify their regular shopping behaviour, indicating that reports of shortages have been exaggerated or isolated.
Middle East tensions increasing wholesale costs
The marked increase in petrol and diesel prices has been directly linked to mounting instability in the Middle East, following military strikes between the US, Israel and Iran approximately a month ago. These regional shifts have created significant uncertainty in worldwide petroleum markets, forcing wholesale costs up and forcing retailers to transfer costs to consumers at the pump. The RAC has documented that regular fuel has increased by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that further regional instability could force prices up still, particularly if transport corridors through key passages become interrupted.
The scheduling of these price increases has proven particularly painful for British motorists heading into the Easter holidays. Families organising driving holidays face significantly higher petrol costs, with the expense of topping up a standard family vehicle now surpassing £82 for standard petrol—roughly £9.50 more than just a month before. Diesel-powered vehicles are affected to an even greater extent, with a full tank now running to over £97, representing a £19 rise. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the cumulative impact on family finances during what ought to be a time of relaxation and journeys.
| Fuel Type | Current Price Change |
|---|---|
| Unleaded petrol | +17p per litre since conflict began |
| Diesel | +35p per litre since conflict began |
| Typical family car (unleaded) | +£9.50 per tank in one month |
| Diesel tank | +£19 per tank in one month |
Oil market volatility and geopolitical factors
Global oil sectors remain highly sensitive to Middle Eastern events, with crude prices reflecting investor concerns about potential disruptions to supply. The attacks on Iran have heightened uncertainty about stability in the region, leading traders to demand premium rates on petroleum contracts. Whilst current prices stay below the exceptional highs witnessed following Russia’s invasion of Ukraine—when wholesale costs reached record highs—the trajectory is worrying. Energy analysts indicate that any further escalation in conflict could spark additional price spikes, particularly if major transport corridors or manufacturing plants experience disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has been placed in an difficult situation. Whilst ministers have publicly criticised fuel retailers for potential profiteering, the Treasury has quietly benefited substantially from the spike in fuel costs. Excise duty on fuel remains fixed regardless of the wholesale cost, meaning the government collects the same tax per litre no matter if petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this inconsistency, proposing that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own windfall from higher fuel prices.
The broader financial consequences go further than domestic spending limits to include price increases across the entire economy. Higher fuel costs flow through distribution networks, influencing transport expenses for goods and services. SMEs relying on high-fuel activities encounter considerable challenges, with freight operators and delivery services facing major expense increases. Consumer purchasing capacity diminishes as families redirect money into fuel purchases rather than different expenditures, likely slowing GDP growth. The RAC has advised drivers to plan refuelling strategically and use price-comparison applications to find the cheapest local forecourts, though such measures provide limited assistance against the broader price surge.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise throughout various sectors and industries
- Consumer non-essential spending declines as household budgets prioritise necessary fuel spending
What drivers ought to do at present
With petrol prices displaying no immediate prospect of falling, motorists are being encouraged to take a more calculated approach to refuelling. The RAC has stressed the significance of planning journeys carefully and utilising price-comparison applications to identify the cheapest forecourts in their surrounding neighbourhood. Whilst such approaches provide only marginal gains, they can build substantially over time. Drivers may also wish to evaluate whether unnecessary trips can be delayed or merged to reduce overall fuel consumption. For those dealing with the Easter period, arranging travel plans ahead of time and refuelling at lower-cost stations before embarking on longer trips could aid in lessening the burden of elevated pump prices on holiday budgets.
- Use fuel price comparison apps to locate the cheapest local forecourts before filling up
- Combine journeys where possible and postpone unnecessary journeys to reduce consumption
- Fill up at more affordable stations before embarking on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and reduce total costs
