Petrol prices have exceeded the 150p-per-litre mark for the first time in nearly two years, fuelling the discussion over whether petrol stations are capitalising on surging oil costs for profit. The typical cost for standard petrol climbed above the symbolic threshold on Friday, whilst diesel surged past 177p, based on figures from the RAC. The notable jumps, which have added nearly £10 to the cost of filling a standard family vehicle in only a month, follow geopolitical tensions in the Middle East that flared up a month ago when the US and Israel carried out operations on Iran. Asda’s chief executive Allan Leighton has firmly rejected accusations of profiteering, instead criticising ministers for unfairly “pointing the finger” at forecourt operators struggling with restricted supply networks.
The 150p ceiling surpassed
The milestone constitutes 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 tank, drivers are now dealing with expenses exceeding £82 for a full tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has termed the breach of 150p as an unwanted milestone that will sting households already struggling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families begin planning their Easter trips and summer breaks, when fuel demand traditionally peaks.
Whilst the current prices stay below the peak levels witnessed following Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited concerns about cost and availability. Diesel has fared even worse, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s analysis shows that petrol has risen 17p per litre in the identical timeframe. With distribution networks already stretched and some forecourts reporting temporary pump closures caused by exceptional demand, the mix of higher prices and potential availability issues risks compound difficulties for drivers throughout the nation.
- Unleaded fuel now 17p more expensive per litre than levels before the conflict
- Diesel costs have risen 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 on government accusations
The intensifying row over fuel pricing has highlighted a growing rift between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances beyond their control. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers throughout the price surge. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and major chains like Asda have insisted that margins have actually compressed during the latest surge, leaving little room for profiteering even if operators were inclined to do so. This finger-pointing reflects the public concern surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The Competition and Markets Authority has announced it will intensify oversight of the fuel sector, indicating that regulatory scrutiny will increase. Yet retailers contend this heightened oversight misses 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 government itself benefits substantially from fuel duty and VAT, potentially earning more from the price surge than retailers do. This observation has introduced an uncomfortable dimension to the discussion, suggesting that government criticism may overlook the state’s own financial interests in elevated fuel costs.
Asda’s defence and supply 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 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 temporarily gone out of service due to unusually high customer demand, but insisted that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements emphasise a important difference between profiteering and supply management. When demand spikes dramatically, as took place following the Middle East tensions, retailers can find it difficult to maintain normal inventory levels despite their best efforts. The Petrol Retailers Association supported this claim, acknowledging 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 need to alter their usual shopping behaviour, suggesting that claims of stock problems are overstated or localised.
Middle East instability pushing wholesale prices
The marked increase in petrol and diesel prices has been closely connected to escalating tensions in the Middle East, in the wake of combat actions between the US, Israel and Iran approximately a month ago. These regional shifts have created significant uncertainty in global oil markets, driving wholesale prices higher and compelling retailers to pass increases through to consumers at fuel stations. The RAC has documented that unleaded petrol has risen by 17p per litre since the conflict began, whilst diesel has increased even more dramatically by 35p per litre. Analysts alert that additional geopolitical disruption could drive prices upward still, notably if supply routes through key passages become blocked.
The scheduling of these cost rises has turned out to be especially difficult for British motorists approaching the Easter holidays. Families planning driving holidays encounter significantly higher fuel bills, with the expense of filling a typical family car now exceeding £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 increase. The RAC’s Simon Williams described the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the combined effect on household budgets 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 political tensions
Global oil markets remain highly responsive to Middle Eastern developments, with crude prices mirroring investor concerns about potential supply disruptions. The attacks on Iran have heightened doubt about stability in the region, leading traders to require premium rates 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 suggest that any further escalation in conflict could spark additional price spikes, particularly if major shipping routes or manufacturing plants experience disruption.
Public finances and impact on consumers
As petrol prices continue their upward trajectory, the government has been placed in an awkward position. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has quietly benefited substantially from the spike in fuel costs. Excise duty on fuel stays constant 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 contradiction, suggesting that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own gains from elevated petrol costs.
The more extensive economic effects transcend personal family finances to include price increases across all economic sectors. Elevated petrol prices pass through supply networks, impacting delivery costs for goods and services. Smaller enterprises relying on fuel-heavy processes face particular hardship, with haulage companies and logistics providers absorbing significant cost increases. Consumer spending power diminishes as people channel spending to fuel stations rather than different expenditures, potentially dampening GDP growth. The RAC has counselled motorists to plan refuelling strategically and utilise fuel-price apps to locate the most affordable nearby petrol stations, though these steps offer only marginal relief against the broader price surge.
- Government receives fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures intensify as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending falls as family finances prioritise essential fuel purchases
What drivers should do at present
With petrol prices showing no immediate signs of retreating, motorists are being encouraged to adopt a more strategic approach to refuelling. The RAC has stressed the significance of mapping out trips methodically and utilising price-comparison applications to find the lowest-priced fuel retailers in their local area. Whilst such steps deliver only limited savings, they can build substantially over time. Drivers should also consider whether non-essential journeys can be delayed or merged to reduce overall fuel consumption. For those facing the Easter holidays, booking travel plans in advance and topping up at budget-friendly forecourts before undertaking longer drives could help mitigate the impact of elevated pump prices on holiday spending.
- Use fuel price comparison apps to locate the cheapest local forecourts before refuelling
- Merge trips where feasible and defer non-essential trips to lower fuel usage
- Fill up at more affordable stations before setting out on extended Easter break trips
- Plan routes carefully to maximise fuel efficiency and minimise overall expenditure
