Petrol prices have exceeded the 150p-per-litre threshold for the first time in nearly two years, intensifying the argument over whether fuel retailers are capitalising on rocketing oil costs for profit. The average price for unleaded petrol exceeded the important mark on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The notable jumps, 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 conducted strikes on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of profiteering, instead blaming ministers for unjustly blaming at forecourt operators battling constrained supply chains.
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 standard family vehicle requiring a 55-litre tank, drivers are now dealing with expenses 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 dealing with the rising cost of living. The increases are especially badly timed, arriving just as families commence planning their Easter getaways and summer breaks, 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 swift increase has revived worries regarding cost and availability. Diesel has struggled even more, climbing 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s findings reveals that petrol has risen 17p per litre in the identical timeframe. With distribution networks already stretched and some petrol stations experiencing temporary pump closures caused by unusually high demand, the combination of elevated costs and possible supply problems threatens to worsen challenges for motorists across the country.
- Unleaded petrol now 17p more expensive per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since the tensions started
- Filling a family car costs roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers challenge on official allegations
The escalating row over fuel pricing has exposed a widening divide 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 throughout the cost escalation. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and major chains like Asda have insisted that margins have truly narrowed during the latest surge, leaving scant scope for profiteering even if operators were disposed to act. This blame-shifting reflects the political importance surrounding fuel costs, which directly impact household budgets and public perception of government competence.
The Competition and Markets Authority has announced it will strengthen oversight of the fuel sector, signalling that regulatory oversight will increase. Yet fuel retailers argue this increased scrutiny overlooks the fundamental point: they are reacting to genuine supply constraints and wholesale price fluctuations, not creating false shortages for profit. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and value-added tax, possibly gaining more from the price spike than fuel retailers. This remark has added an awkward element to the discussion, suggesting that government criticism may disregard the state’s own economic stakes in higher fuel prices.
Asda’s defence and procurement pressures
As the UK’s second largest fuel retailer, Asda has positioned itself at the heart of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, stressing instead that fuel volumes have increased substantially, with demand far exceeding available supply. He acknowledged that a small number of pumps have briefly stopped operating due to unusually high customer demand, but insisted that Asda has not closed any forecourts entirely. The company expects affected pumps to resume service following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks highlight a important distinction between profit-seeking and inventory control. When demand spikes dramatically, as has occurred following the regional tensions in the Middle East, retailers may find it challenging to keep up inventory levels despite their best efforts. The Petrol Retailers Association supported this claim, recognising isolated availability issues at “a handful of forecourts for one retailer” but asserting that supply across the UK is operating as usual. The body advised drivers that there is no need to modify their regular purchasing habits, indicating that reports of shortages have been inflated or localised.
Middle East tensions pushing bulk pricing
The notable surge in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, subsequent to combat actions between the US, Israel and Iran about a month prior. These geopolitical developments have created significant uncertainty in global oil markets, pushing wholesale costs upwards and obliging retailers to transfer costs to consumers at the pump. The RAC has recorded that regular fuel has climbed by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that additional geopolitical disruption could push prices higher still, notably if transport corridors through key passages become interrupted.
The scheduling of these cost rises has proven especially difficult for British drivers heading into the Easter holidays. Families organising road trips encounter considerably elevated petrol costs, with the cost of filling a typical family car now surpassing £82 for standard petrol—roughly £9.50 more than just a month earlier. Diesel-powered vehicles are affected to an even greater extent, with a full tank now costing over £97, constituting a £19 rise. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the cumulative impact on household budgets during what should be a time 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 fluctuations plus political tensions
Global oil markets stay highly responsive to Middle Eastern events, with crude prices mirroring investor concerns about possible disruptions to supply. The attacks on Iran have heightened doubt about stability in the region, leading traders to require premium rates on petroleum contracts. Whilst current prices remain below the exceptional highs seen after Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts indicate that any further escalation in conflict could trigger further price increases, particularly if major transport corridors or manufacturing plants face disruption.
Public finances and consumer impact
As petrol prices keep rising steadily, the government has been placed in an awkward position. Whilst ministers have publicly criticised 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 executive chairman 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 wider economic effects transcend individual household budgets to encompass inflationary forces across the entire economy. Elevated petrol prices feed through supply networks, influencing transport expenses for goods and services. Small businesses relying on fuel-intensive operations experience significant difficulty, with transport firms and courier services bearing substantial cost rises. Household purchasing power diminishes as families redirect money into fuel purchases rather than different expenditures, possibly reducing GDP growth. The RAC has recommended vehicle owners to plan refuelling strategically and employ price-checking tools to locate the lowest-priced local fuel retailers, though such measures deliver modest help against the wider price increase.
- Government receives fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as shipping expenses rise across all sectors and industries
- Consumer non-essential spending declines as family finances prioritise essential fuel purchases
What motorists should do at present
With petrol prices showing no immediate signs of retreating, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has emphasised the importance of planning journeys carefully and using price-comparison tools to identify the cheapest forecourts in their surrounding neighbourhood. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers should also consider whether non-essential journeys can be deferred or consolidated to lower total fuel usage. For those facing the Easter holidays, booking travel plans in advance and refuelling at lower-cost stations before setting out on extended journeys could assist in reducing the effect of increased fuel costs on vacation finances.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before filling up
- Combine journeys where feasible and postpone unnecessary journeys to reduce consumption
- Fill up at cheaper locations before setting out on longer Easter holiday journeys
- Map your journey with care to maximise fuel efficiency and reduce total costs
