Petrol prices have surpassed the 150p-per-litre milestone for the first occasion in nearly two years, heightening the argument over whether fuel retailers are capitalising on surging oil costs for profit. The average price for unleaded petrol rose past the symbolic threshold 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 standard family vehicle in just a month, follow geopolitical tensions in the region that erupted a month ago when the US and Israel conducted strikes on Iran. Asda’s executive chairman Allan Leighton has firmly rejected accusations of profiteering, instead criticising ministers for wrongly accusing at forecourt operators struggling with restricted supply networks.
The 150p threshold broken
The milestone represents a important juncture for British motorists, who have observed fuel costs rise consistently 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 complete tank of unleaded petrol—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwelcome milestone that will affect households already struggling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families start planning their Easter getaways and summer holidays, when demand for fuel traditionally peaks.
Whilst the current prices stay below the record highs recorded after Russia’s attack on Ukraine in 2022, the swift increase has revived worries regarding affordability and accessibility. Diesel has performed considerably worse, climbing 35p per litre since the conflict began and now standing at over 177p. The RAC’s analysis reveals that unleaded petrol has increased 17p per litre in the identical timeframe. With distribution networks already stretched and some petrol stations reporting temporary pump closures caused by exceptional demand, the mix of elevated costs and potential availability issues risks worsen challenges for drivers throughout the nation.
- Unleaded petrol now 17p costlier per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since the tensions started
- Filling up a family car costs approximately £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retailers challenge against state claims
The growing row over fuel pricing has highlighted a widening divide between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers during the price surge. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the latest surge, leaving little room for profiteering even if operators were disposed to act. This mutual recrimination reflects the public concern surrounding fuel costs, which directly impact household budgets and consumer views of government competence.
The CMA has stated it will intensify monitoring of the petrol market, signalling that regulatory scrutiny will increase. Yet retailers contend this heightened oversight misses the fundamental point: they are responding to genuine supply constraints and wholesale price fluctuations, not engineering false shortages for financial gain. Asda’s Allan Leighton pointed out that the government itself benefits substantially from fuel duty and VAT, possibly gaining more from the price spike than retailers do. This observation has added an awkward element to the debate, suggesting that government criticism may disregard the government’s own financial interests in elevated fuel costs.
Asda’s defense and logistics challenges
As the UK’s second-biggest fuel supplier, Asda has positioned itself at the heart of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is taking advantage of the situation, emphasising instead that fuel volumes have increased substantially, 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 resume service following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements emphasise a important separation between profit-seeking and supply management. When demand spikes dramatically, as took place after the regional tensions in the Middle East, retailers can find it difficult to keep up inventory levels in spite of their efforts. The Petrol Retailers Association corroborated this claim, acknowledging sporadic supply problems at “a handful of forecourts for one retailer” but asserting that supply across the UK is flowing normally. The association recommended drivers that there is no need to modify their regular purchasing habits, suggesting that reports of shortages are overstated or localised.
Middle East instability increasing wholesale prices
The marked increase in petrol and diesel prices has been directly linked to escalating tensions in the Middle East, in the wake of armed operations between the US, Israel and Iran approximately a month ago. These regional shifts have generated considerable instability in international energy markets, forcing wholesale costs up and compelling retailers to hand on rises to consumers at fuel stations. The RAC has noted that regular fuel has increased by 17p per litre since the fighting commenced, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that additional geopolitical disruption could force prices up still, particularly if transport corridors through key passages become interrupted.
The timing of these price increases has proven especially difficult for British motorists approaching the Easter break. Families organising driving holidays encounter considerably elevated petrol costs, with the expense of filling a typical family car now surpassing £82 for standard petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles are impacted even more severely, with a complete fill-up now costing over £97, representing a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre mark as an “unwelcome milestone,” underlining the cumulative impact on family finances during what should 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 stay highly responsive to Middle Eastern events, with crude prices reflecting investor concerns about potential supply disruptions. The attacks on Iran have increased doubt about regional stability, prompting traders to require risk premiums on petroleum contracts. Whilst current prices stay below the exceptional highs witnessed following Russia’s invasion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts suggest that any additional escalation in hostilities could trigger additional price spikes, particularly if major shipping routes or production facilities experience disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has been placed in an difficult situation. Whilst government officials have openly condemned fuel retailers for potential profiteering, 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 regardless of whether 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 implications extend beyond personal family finances to include price increases across all economic sectors. Increased fuel expenses pass through supply chains, influencing transport expenses for goods and services. Smaller enterprises relying on fuel-heavy processes face particular hardship, with haulage companies and logistics providers bearing substantial cost rises. Consumer purchasing capacity falls as families redirect money to fuel stations rather than other purchases, likely slowing economic growth. The RAC has recommended vehicle owners to schedule fuel purchases carefully and utilise fuel-price apps to identify the most affordable nearby petrol stations, though such measures provide limited assistance against the broader price surge.
- Government collects fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as transport costs rise throughout various sectors and industries
- Consumer non-essential spending declines as household budgets prioritise essential fuel purchases
What drivers should do at present
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to adopt a more strategic approach to refuelling. The RAC has highlighted the value of mapping out trips methodically and using price-comparison tools 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 deferred or consolidated to minimise overall fuel expenditure. For those dealing with the Easter period, reserving travel arrangements early and refuelling at lower-cost stations before setting out on extended journeys could help mitigate the impact of elevated pump prices on vacation finances.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before filling up
- Merge trips where feasible and defer unnecessary journeys to reduce consumption
- Fill up at more affordable stations before setting out on extended Easter break trips
- Plan routes carefully to improve fuel economy and reduce total costs
