Petrol prices have surpassed the 150p-per-litre milestone for the first occasion in almost two years, heightening the discussion over whether petrol stations are capitalising on rocketing 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 sharp increases, which have pushed up by £10 to the price of topping up a typical family car in only a month, follow military tensions in the Middle East that broke out a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has strongly denied accusations of profiteering, instead criticising ministers for wrongly accusing at petrol station owners battling limited supply chains.
The 150p threshold broken
The milestone constitutes a important juncture for British motorists, who have seen fuel costs increase progressively since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now dealing with expenses exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has characterised the breach of 150p as an unwelcome milestone that will sting households already grappling with the rising cost of living. The increases are particularly poorly timed, arriving just as families begin planning their Easter getaways and summer holidays, when demand for fuel traditionally peaks.
Whilst the current prices remain below the record highs witnessed following Russia’s attack on Ukraine in 2022, the rapid acceleration has reignited concerns about cost and availability. Diesel has struggled even more, rising 35p per litre since the conflict began 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 petrol stations reporting temporary pump closures due to unusually high demand, the combination of elevated costs and potential availability issues threatens to worsen challenges 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 approximately £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back on government accusations
The escalating row over fuel pricing has highlighted a widening divide between the government and forecourt operators, who argue they are being unjustly blamed for circumstances they cannot influence. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers during the cost escalation. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have actually compressed during the recent spike, leaving scant scope for profiteering even if operators were inclined to do so. This blame-shifting reflects the political sensitivity 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, indicating that regulatory scrutiny will tighten. Yet retailers argue this increased scrutiny overlooks the core issue: they are responding to genuine supply constraints and wholesale price movements, not creating artificial scarcity for financial gain. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and VAT, possibly gaining more from the price surge than retailers do. This remark has introduced an uncomfortable dimension to the discussion, suggesting that criticism from Westminster may disregard the state’s own financial interests in higher fuel prices.
Asda’s defence and procurement pressures
As the UK’s second-biggest fuel supplier, 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, stressing 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 unusually high customer demand, but maintained that Asda has not shut down any petrol stations completely. The company expects affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements emphasise a key separation between profiteering and inventory control. When demand surges unexpectedly, as took place in the wake of the Middle East tensions, retailers can find it difficult to maintain normal inventory levels despite their best efforts. The Association of Petrol Retailers backed up this claim, acknowledging isolated availability issues at “a handful of forecourts for one retailer” but asserting that supply across the UK is functioning smoothly. The association recommended drivers that there is no requirement to alter their usual purchasing habits, suggesting that reports of shortages have been exaggerated or confined to specific areas.
Middle East tensions driving bulk pricing
The marked increase in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, in the wake of combat actions 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 obliging retailers to pass increases through to consumers on the forecourt. The RAC has recorded that standard petrol has increased by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that ongoing tensions could drive prices upward still, notably if supply routes through essential bottlenecks become interrupted.
The timing of these price increases has turned out to be particularly painful for British drivers approaching the Easter break. Families organising driving holidays face significantly higher petrol costs, with the cost of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 more than just a month before. Diesel-powered vehicles are impacted to an even greater extent, with a full tank now costing over £97, representing a £19 increase. The RAC’s Simon Williams described the breaching of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the cumulative impact on family finances during what should be a period 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 |
Crude oil fluctuations plus political tensions
Global oil markets remain highly responsive to Middle Eastern events, with crude prices mirroring investor worries about possible disruptions to supply. The attacks on Iran have increased uncertainty about regional stability, leading traders to require premium rates on petroleum contracts. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s invasion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is worrying. Energy analysts suggest that any further escalation in hostilities could spark further price increases, especially if major shipping routes or manufacturing plants face disruption.
Public finances and consumer impact
As petrol prices keep rising steadily, the government has found itself in an awkward position. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the spike in fuel costs. Excise duty on fuel stays constant 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, suggesting that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own gains from elevated petrol costs.
The wider financial consequences go further than individual household budgets to cover inflationary forces throughout the wider economy. Higher fuel costs flow through distribution networks, affecting transport expenses for goods and services. SMEs dependent on fuel-intensive operations experience significant difficulty, with transport firms and logistics providers facing major expense increases. Consumer spending power diminishes as families redirect money toward petrol pumps rather than different expenditures, possibly reducing economic growth. The RAC has recommended vehicle owners to organise refuelling efficiently and utilise fuel-price apps to identify the cheapest local forecourts, though these steps deliver modest help against the overall cost escalation.
- Government collects fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending declines as family finances focus on necessary fuel spending
What drivers ought to 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 locate the most affordable petrol stations in their local area. Whilst such steps deliver only limited savings, they can build substantially over time. Drivers may also wish to evaluate whether non-essential journeys can be deferred or consolidated to minimise overall fuel expenditure. For those dealing with the Easter period, arranging travel plans ahead of time and topping up at budget-friendly forecourts before undertaking longer drives could help mitigate the impact of higher petrol rates on holiday budgets.
- Use fuel price comparison apps to locate the cheapest local forecourts before filling up
- Combine journeys where possible and postpone non-essential trips to lower fuel usage
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Plan routes carefully to maximise fuel efficiency and minimise overall expenditure
