Petrol prices have breached the 150p-per-litre mark for the first occasion in nearly two years, intensifying the discussion over whether fuel retailers 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 steep rises, which have increased by around £10 to the cost of filling a typical family car in just a month, follow geopolitical tensions in the region that broke out a month ago when the US and Israel conducted strikes on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of excessive profit-taking, instead criticising ministers for unfairly “pointing the finger” at forecourt operators battling restricted supply networks.
The 150p threshold broken
The milestone represents a important juncture for British motorists, who have observed fuel costs increase progressively since the Middle East tensions began. For a standard family vehicle requiring a 55-litre tank, drivers are now encountering costs exceeding £82 for a complete 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 sting households already struggling with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families begin planning their Easter getaways and summer breaks, when demand for fuel typically reaches its highest levels.
Whilst the present prices stay below the record highs recorded after Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived concerns about cost and availability. Diesel has struggled even more, 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 identical timeframe. With distribution networks already stretched and some forecourts experiencing temporary pump closures caused by unusually high demand, the mix of elevated costs and possible supply problems threatens to compound difficulties for drivers throughout the nation.
- 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
Retailers challenge on official allegations
The escalating row over fuel pricing has exposed a deepening split between the government and forecourt operators, who argue they are being wrongly targeted for circumstances they cannot influence. Ministers have adopted more aggressive 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 counterproductive. The Petrol Retailers Association and large retailers like Asda have insisted that margins have genuinely tightened during the latest surge, leaving scant scope for profiteering even if operators were willing to do so. This finger-pointing 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 monitoring of the petrol market, signalling that regulatory oversight will increase. Yet fuel retailers contend this heightened oversight misses the fundamental point: they are reacting to real supply limitations and wholesale price movements, not engineering false shortages for financial gain. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and value-added tax, possibly gaining more from the price spike than fuel retailers. This observation has introduced an awkward element to the debate, implying that criticism from Westminster may disregard the government’s own economic stakes in elevated fuel costs.
Asda’s defence and supply pressures
As the UK’s second-biggest fuel retailer, Asda has positioned itself at the centre of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have increased substantially, with demand far exceeding 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 shut down any petrol stations completely. The company anticipates the affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s observations emphasise a important distinction between profiteering and supply management. When demand surges unexpectedly, as has occurred after the Middle East tensions, retailers can find it difficult to maintain standard inventory levels despite making every effort. The Association of Petrol Retailers backed up this claim, recognising sporadic supply problems at “a small number of forecourts for one retailer” but insisting that overall UK supply is functioning smoothly. The association counselled drivers that there is no requirement to alter their usual buying patterns, indicating that accounts of supply issues are overstated or isolated.
Middle East tensions increasing bulk pricing
The sharp rise in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, following armed operations between the US, Israel and Iran about a month prior. These political changes have produced substantial volatility in international energy markets, forcing wholesale costs up and forcing retailers to transfer costs to consumers at fuel stations. The RAC has noted that unleaded petrol has climbed by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts warn that ongoing tensions could drive prices upward still, particularly if transport corridors through key passages become disrupted.
The timing of these cost rises has proven especially difficult for British motorists approaching the Easter holidays. Families planning road trips face considerably elevated fuel bills, with the expense of topping up a standard family vehicle now surpassing £82 for standard petrol—roughly £9.50 more than just a month earlier. Diesel cars are impacted to an even greater extent, with a full tank now costing over £97, constituting a £19 increase. The RAC’s Simon Williams described the breaching of the 150p-per-litre threshold 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 volatility and geopolitical factors
Global oil markets remain highly sensitive to Middle Eastern developments, with crude prices reflecting investor worries about potential disruptions to supply. The attacks on Iran have increased uncertainty about stability in the region, prompting traders to require premium rates on petroleum contracts. Whilst current prices remain below the exceptional highs witnessed following Russia’s invasion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts indicate that any further escalation in conflict could spark additional price spikes, particularly if major transport corridors or manufacturing plants face disruption.
Public finances 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 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, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own gains from elevated petrol costs.
The wider economic effects extend beyond personal family finances to include price increases across the entire economy. Higher fuel costs flow through supply chains, affecting transport expenses for products and services. Smaller enterprises reliant on fuel-heavy processes face particular hardship, with freight operators and delivery services absorbing significant cost increases. Consumer purchasing capacity falls as families redirect money into fuel purchases rather than other purchases, potentially dampening GDP growth. The RAC has advised drivers to plan refuelling strategically and employ price-checking tools to identify the lowest-priced local fuel retailers, though these approaches provide limited assistance against the broader price surge.
- Government receives fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise across all sectors and industries
- Consumer discretionary spending falls as household budgets focus on essential fuel purchases
What drivers ought to do at present
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to take a more calculated approach to refuelling. The RAC has stressed the significance of carefully planning journeys and using price-comparison tools to identify the cheapest forecourts in their local area. Whilst such measures offer only modest savings, they can accumulate meaningfully over time. Drivers may also wish to evaluate whether unnecessary trips can be postponed or combined to minimise overall fuel expenditure. For those dealing with the Easter period, booking travel plans in advance and refuelling at lower-cost stations before embarking on longer trips could assist in reducing the effect of increased fuel costs on holiday spending.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before filling up
- Merge trips where feasible and defer non-essential trips to reduce consumption
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Map your journey with care to maximise fuel efficiency and minimise overall expenditure
