Petrol prices have surpassed the 150p-per-litre threshold for the first time in nearly two years, intensifying the argument over whether fuel retailers are exploiting surging oil costs for profit. The average price for unleaded petrol exceeded the important mark on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The notable jumps, which have added nearly £10 to the cost of filling a typical family car in only a month, follow regional conflict in the region that flared up a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of excessive profit-taking, instead blaming ministers for unfairly “pointing the finger” at petrol station owners battling limited supply chains.
The 150p ceiling surpassed
The milestone represents a significant moment for British motorists, who have seen fuel costs rise consistently since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre tank, drivers are now facing bills exceeding £82 for a complete tank of unleaded petrol—nearly £10 more than just a month earlier. The RAC has characterised the breach of 150p as an unwanted milestone that will sting households already grappling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families start planning their Easter trips and summer breaks, when fuel demand typically reaches its highest levels.
Whilst the current prices stay below the record highs witnessed following Russia’s invasion of Ukraine in 2022, the swift increase has revived worries regarding cost and availability. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s findings shows that unleaded petrol has increased 17p per litre in the same period. With distribution networks already strained and some forecourts experiencing brief shutdowns caused by unusually high demand, the mix of higher prices and possible supply problems threatens to compound difficulties for motorists across the country.
- 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 roughly £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back against official allegations
The escalating row over fuel pricing has highlighted a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances outside their remit. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid the cost escalation. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and major chains like Asda have insisted that margins have truly narrowed during the current increase, leaving little room for profiteering even if operators were inclined to do so. This finger-pointing reflects the political importance surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The Competition and Markets Authority has announced it will strengthen oversight of the petrol market, signalling that regulatory oversight will increase. Yet fuel retailers contend this increased scrutiny misses the fundamental point: they are reacting to real supply limitations and wholesale price fluctuations, not engineering artificial scarcity for profit. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and VAT, potentially earning more from the price surge than fuel retailers. This remark has introduced an awkward element to the discussion, implying that government criticism may disregard the government’s own economic stakes in higher fuel prices.
Asda’s defense and logistics difficulties
As the UK’s second-biggest fuel retailer, Asda has found itself at the centre of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is taking advantage of the situation, emphasising instead that fuel volumes have increased substantially, 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 separation between profiteering and inventory control. When demand spikes dramatically, as took place in the wake of the Middle East tensions, retailers can struggle to maintain standard stock levels in spite of their efforts. The Petrol Retailers Association corroborated this claim, recognising sporadic supply problems at “a small number of forecourts for one retailer” but insisting that supply across the UK is functioning smoothly. The association recommended drivers that there is no reason to alter their usual shopping behaviour, implying that accounts of supply issues have been exaggerated or confined to specific areas.
Middle East tensions increasing wholesale costs
The sharp rise in petrol and diesel prices has been firmly tied to escalating tensions in the Middle East, subsequent to military strikes between the US, Israel and Iran roughly a month earlier. These political changes have produced substantial volatility in worldwide petroleum markets, pushing wholesale costs upwards and obliging retailers to pass increases through to consumers at fuel stations. The RAC has documented that regular fuel has risen by 17p per litre since the conflict began, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that additional geopolitical disruption could force prices up still, notably if transport corridors through essential bottlenecks become disrupted.
The scheduling of these cost rises has turned out to be particularly painful for British motorists approaching the Easter break. Families organising road trips face significantly higher fuel bills, with the cost of topping up a standard family vehicle now surpassing £82 for unleaded petrol—roughly £9.50 more than just a month before. Diesel cars are impacted to an even greater extent, with a complete fill-up now costing over £97, representing a £19 increase. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the combined effect on family finances during what should be a period of leisure and travel.
| 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 fluctuations plus political tensions
Global oil sectors stay highly responsive to Middle Eastern developments, with crude prices mirroring investor worries about potential supply disruptions. The attacks on Iran have increased uncertainty about stability in the region, leading traders to demand premium rates on petroleum contracts. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is concerning. Energy analysts suggest that any further escalation in hostilities could spark further price increases, particularly if major shipping routes or manufacturing plants face disruption.
Government revenue and impact on consumers
As petrol prices maintain their upward climb, the government has been placed in an awkward position. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel remains fixed regardless of the wholesale cost, meaning the government receives identical duty per litre no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this contradiction, proposing that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own gains from elevated petrol costs.
The wider economic implications transcend individual household budgets to cover inflation pressures across all economic sectors. Elevated petrol prices pass through distribution networks, influencing transport expenses for commodities and services. SMEs relying on high-fuel activities encounter considerable challenges, with freight operators and logistics providers bearing substantial cost rises. Consumer purchasing capacity falls as families redirect money toward petrol pumps rather than alternative spending, possibly reducing GDP growth. The RAC has advised vehicle owners to schedule fuel purchases carefully and utilise fuel-price apps to locate the cheapest local forecourts, though these approaches offer only marginal relief against the broader price surge.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures intensify as transport costs rise throughout various sectors and industries
- Consumer non-essential spending falls as household budgets focus on essential fuel purchases
What motorists should do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to adopt a more strategic approach to refuelling. The RAC has emphasised the importance of planning journeys carefully and leveraging price-comparison platforms to identify the cheapest forecourts in their local area. Whilst such measures offer only modest savings, they can add up considerably over time. Drivers ought to also think about whether discretionary journeys can be postponed or combined to minimise overall fuel expenditure. For those dealing with the Easter period, booking travel plans in advance and filling up at cheaper locations before setting out on extended journeys could aid in lessening the burden of elevated pump prices on holiday spending.
- Use petrol price finder tools to find the cheapest local forecourts before refuelling
- Combine journeys where feasible and postpone unnecessary journeys to reduce consumption
- Fill up at cheaper locations before setting out on longer Easter holiday journeys
- Plan routes carefully to maximise fuel efficiency and reduce total costs
