Petrol prices have breached the 150p-per-litre mark for the first occasion in almost two years, heightening the argument over whether petrol stations are exploiting surging oil costs for financial gain. The typical cost for standard petrol rose past the important mark on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The notable jumps, which have pushed up by £10 to the cost of filling a typical family car in just a month, follow military tensions in the region that erupted 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 blaming ministers for wrongly accusing at forecourt operators struggling with constrained supply chains.
The 150p threshold broken
The milestone represents a significant moment for British motorists, who have seen fuel costs climb steadily since the Middle East tensions began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now encountering costs exceeding £82 for a full 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 impact families already grappling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families start planning their Easter trips and summer breaks, when demand for fuel traditionally peaks.
Whilst the present prices stay below the record highs recorded following Russia’s attack on Ukraine in 2022, the swift increase has reignited worries regarding cost and availability. Diesel has fared even worse, climbing 35p per litre since the conflict began and now reaching over 177p. The RAC’s findings shows that petrol has increased 17p per litre in the same period. With supply chains already strained and some petrol stations experiencing temporary pump closures due to exceptional demand, the mix of higher prices and possible supply problems threatens to compound difficulties for drivers across the country.
- Unleaded fuel now 17p more expensive per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since the tensions started
- Filling a family car costs approximately £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retailers challenge against government accusations
The escalating row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid the price surge. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and large retailers like Asda have insisted that margins have actually compressed during the current increase, leaving minimal space for profiteering even if operators were willing to do so. This mutual recrimination reflects the political sensitivity surrounding fuel costs, which significantly affect household budgets and consumer views of government competence.
The CMA has announced it will intensify oversight of the petrol market, signalling that regulatory scrutiny will increase. Yet retailers argue this increased scrutiny misses the fundamental point: they are responding to real supply limitations and wholesale price fluctuations, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton pointed out that the state profits significantly from fuel duty and VAT, possibly gaining more from the price surge than retailers do. This observation has added an awkward element to the discussion, implying that criticism from Westminster may overlook the government’s own financial interests in elevated fuel costs.
Asda’s defence and supply challenges
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 taking advantage of the situation, emphasising instead that fuel volumes have increased substantially, with demand substantially outstripping available supply. He acknowledged 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 expects affected pumps to return to operation following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements highlight a key difference between profiteering and inventory control. When demand surges unexpectedly, as has occurred after the regional tensions in the Middle East, retailers can find it difficult to maintain normal stock levels in spite of their efforts. The Petrol Retailers Association backed up this claim, recognising sporadic supply problems at “a handful of forecourts for one retailer” but maintaining that overall UK supply is flowing normally. The association advised drivers that there is no reason to change their normal purchasing habits, indicating that accounts of supply issues have been inflated or localised.
Middle Eastern tensions pushing bulk pricing
The notable surge in petrol and diesel prices has been closely connected to mounting instability in the Middle East, following combat actions between the US, Israel and Iran about a month prior. These political changes have created significant uncertainty in global oil markets, pushing wholesale costs upwards and obliging retailers to hand on rises to consumers on the forecourt. The RAC has noted that unleaded petrol has risen by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts caution that ongoing tensions could push prices higher still, especially should distribution channels through critical chokepoints become disrupted.
The timing of these cost rises has proven especially difficult for British motorists approaching the Easter break. Families planning driving holidays face considerably elevated petrol costs, with the expense of filling a typical family car now surpassing £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel-powered vehicles are impacted even more severely, with a complete fill-up now costing over £97, constituting a £19 rise. The RAC’s Simon Williams described the breaching of the 150p-per-litre mark as an “unwelcome milestone,” underlining the combined effect on household budgets 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 volatility and geopolitical factors
Global oil sectors remain highly sensitive to Middle Eastern events, with crude prices reflecting investor worries about potential disruptions to supply. The attacks on Iran have increased uncertainty about stability in the region, leading traders to require premium rates on petroleum agreements. 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 further price increases, especially if major transport corridors or manufacturing plants face disruption.
Government revenue and consumer impact
As petrol prices continue their upward trajectory, the government has been placed in an difficult situation. 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 market price, 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 accusing retailers of exploiting the crisis, the government ought to recognise its own windfall from higher fuel prices.
The wider economic effects go further than individual household budgets to include price increases throughout the wider economy. Higher fuel costs flow through distribution networks, affecting haulage expenses for goods and services. Smaller enterprises reliant on high-fuel activities face particular hardship, with transport firms and courier services absorbing significant cost increases. Consumer spending power diminishes as people channel spending toward petrol pumps rather than other purchases, possibly reducing economic growth. The RAC has counselled motorists to plan refuelling strategically and utilise fuel-price apps to find the cheapest local forecourts, though these steps deliver modest help against the wider price increase.
- Government collects fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending declines as household budgets prioritise essential fuel purchases
What motorists should do at present
With petrol prices displaying no immediate prospect of falling, motorists are being urged to implement a more planned strategy to refuelling. The RAC has emphasised the importance of mapping out trips methodically and utilising price-comparison applications to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such approaches provide only marginal gains, they can accumulate meaningfully over time. Drivers may also wish to evaluate whether non-essential journeys can be postponed or combined 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 setting out on extended journeys could assist in reducing the effect of increased fuel costs on holiday budgets.
- Use petrol price finder tools to find the cheapest local forecourts before refuelling
- Merge trips where possible and postpone unnecessary journeys to lower fuel usage
- Fill up at cheaper locations before setting out on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and minimise overall expenditure
