Petrol prices have exceeded the 150p-per-litre threshold for the first occasion in almost two years, heightening the argument over whether petrol stations are capitalising on soaring oil costs for profit. The average price for unleaded petrol exceeded the important mark on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The steep rises, which have added nearly £10 to the cost of filling a standard family vehicle in just a month, follow military tensions in the Middle East that flared up a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of profiteering, instead blaming ministers for wrongly accusing at petrol station owners facing constrained supply chains.
The 150p ceiling surpassed
The milestone constitutes a important juncture for British motorists, who have observed fuel costs increase progressively since the Middle East tensions began. For a typical family car requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a full tank of unleaded petrol—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwanted milestone that will affect households already grappling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families start planning their Easter getaways and summer breaks, when fuel demand traditionally peaks.
Whilst the present prices remain below the record highs recorded after Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited worries regarding affordability and accessibility. Diesel has performed considerably worse, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s findings reveals that petrol has risen 17p per litre in the identical timeframe. With supply chains already stretched and some petrol stations reporting temporary pump closures due to unusually high demand, the mix of higher prices and possible supply problems threatens to worsen challenges for drivers across the country.
- Unleaded petrol now 17p costlier per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since the tensions started
- Filling a family car costs roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back against government accusations
The growing row over fuel pricing has exposed a widening divide between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted progressively confrontational 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 counterproductive. The Petrol Retailers Association and large retailers like Asda have insisted that margins have truly narrowed during the latest surge, leaving scant scope for profiteering even if operators were willing to do so. This blame-shifting reflects the public concern surrounding fuel costs, which materially influence household budgets and popular understanding of government competence.
The Competition and Markets Authority has stated it will strengthen monitoring of the fuel sector, signalling that regulatory scrutiny will tighten. Yet fuel retailers contend this increased scrutiny misses the fundamental point: they are reacting to genuine supply constraints and wholesale price fluctuations, not creating false shortages for financial gain. Asda’s Allan Leighton highlighted that the government itself benefits substantially from fuel duty and VAT, potentially earning more from the price surge than retailers do. This observation has added an awkward element to the debate, implying that government criticism may overlook the government’s own economic stakes in higher fuel prices.
Asda’s defence and procurement pressures
As the UK’s second largest fuel retailer, Asda has positioned itself at the heart of the pricing row. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have surged significantly, with demand far exceeding available supply. He conceded that a small number of pumps have briefly stopped operating due to exceptional customer demand, but maintained that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations emphasise a key difference between profit-seeking and supply management. When demand surges unexpectedly, as took place after the regional tensions in the Middle East, retailers can struggle to keep up inventory levels despite making every effort. The Association of Petrol Retailers backed up this narrative, recognising sporadic supply problems at “a handful of forecourts for one retailer” but asserting that supply across the UK is functioning smoothly. The association counselled drivers that there is no reason to change their normal purchasing habits, implying that accounts of supply issues have been exaggerated or isolated.
Middle Eastern instability increasing wholesale costs
The sharp rise in petrol and diesel prices has been closely connected to mounting instability in the Middle East, subsequent to armed operations between the US, Israel and Iran roughly a month earlier. These geopolitical developments have created significant uncertainty in worldwide petroleum markets, forcing wholesale costs up and compelling retailers to hand on rises to consumers at the pump. The RAC has documented that standard petrol has increased by 17p per litre since hostilities started, whilst diesel has increased even more dramatically by 35p per litre. Analysts alert that ongoing tensions could push prices higher still, particularly if distribution channels through essential bottlenecks become interrupted.
The scheduling of these cost rises has turned out to be particularly painful for British motorists heading into the Easter break. Families organising driving holidays encounter significantly higher petrol costs, with the expense of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel cars are affected even more severely, with a full tank now costing over £97, constituting 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 ought to be a time 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 |
Crude oil fluctuations plus political tensions
Global oil sectors remain highly responsive to Middle Eastern events, with crude prices mirroring investor concerns about potential disruptions to supply. The attacks on Iran have increased uncertainty about regional stability, leading traders to demand risk premiums on petroleum agreements. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s military incursion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts indicate that any additional escalation in conflict could trigger further price increases, particularly if major shipping routes or manufacturing plants face disruption.
Government revenue and impact on consumers
As petrol prices continue their upward trajectory, the government has found itself in an awkward position. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has quietly benefited substantially 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 chief executive Allan Leighton deliberately highlighted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own gains from elevated petrol costs.
The wider economic implications extend beyond personal family finances to cover inflation pressures throughout the wider economy. Elevated petrol prices flow through distribution networks, affecting haulage expenses for commodities and services. Small businesses reliant on fuel-intensive operations experience significant difficulty, with freight operators and courier services absorbing significant cost increases. Consumer spending power diminishes as people channel spending into fuel purchases rather than different expenditures, possibly reducing economic growth. The RAC has advised vehicle owners to schedule fuel purchases carefully and use price-comparison applications to locate the lowest-priced local fuel retailers, though these approaches provide limited assistance against the wider price increase.
- Government receives fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures intensify as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending falls as household budgets prioritise necessary fuel spending
What motorists should do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being urged to adopt a more strategic approach to refuelling. The RAC has emphasised the importance of planning journeys carefully and utilising price-comparison applications to identify the cheapest forecourts in their local area. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers should also consider whether unnecessary trips can be delayed or merged to lower total fuel usage. For those dealing with the Easter period, arranging travel plans ahead of time and refuelling at lower-cost stations before undertaking longer drives could aid in lessening the burden of increased fuel costs on holiday budgets.
- Use petrol price finder tools to locate the cheapest local forecourts before refuelling
- Combine journeys where possible and postpone unnecessary journeys to reduce consumption
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and reduce total costs
