Petrol prices have surpassed the 150p-per-litre milestone for the first occasion in almost two years, fuelling the argument over whether fuel retailers are capitalising on surging oil costs for profit. The average price for unleaded petrol rose past the important mark on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The notable jumps, which have increased by around £10 to the cost of filling a standard family vehicle in just a month, follow military tensions in the Middle East that flared up a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has strongly denied accusations of profiteering, instead blaming ministers for wrongly accusing at forecourt operators battling limited supply chains.
The 150p barrier breached
The milestone marks a important juncture for British motorists, who have observed fuel costs climb steadily since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre tank, drivers are now dealing with expenses exceeding £82 for a complete 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 affect households already struggling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families commence planning their Easter getaways and summer breaks, when demand for fuel conventionally surges.
Whilst the present prices stay below the record highs witnessed following Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited concerns about affordability and accessibility. Diesel has performed considerably worse, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s analysis reveals that unleaded petrol has risen 17p per litre in the same period. With distribution networks already strained and some petrol stations reporting brief shutdowns caused by exceptional demand, the combination of higher prices and possible supply problems risks compound difficulties for drivers across the country.
- Unleaded fuel now 17p more expensive per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since tensions began
- Filling a family car costs roughly £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back 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 unfairly scapegoated for circumstances outside their remit. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers amid the cost escalation. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have genuinely tightened during the current increase, leaving little room 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 popular understanding of government competence.
The Competition and Markets Authority has announced it will intensify monitoring of the petrol market, signalling that regulatory oversight will increase. Yet fuel retailers contend this heightened oversight overlooks the fundamental point: they are responding to real supply limitations and wholesale price movements, not creating false shortages for financial gain. Asda’s Allan Leighton highlighted that the state benefits substantially from fuel duty and VAT, potentially earning more from the price surge than fuel retailers. This observation has introduced an uncomfortable dimension to the discussion, suggesting that criticism from Westminster may disregard the government’s own financial interests in elevated fuel costs.
Asda’s defense and logistics challenges
As the UK’s second largest fuel supplier, Asda has positioned itself at the heart of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, stressing instead that fuel volumes have surged significantly, with demand substantially outstripping available supply. He conceded that a small number of pumps have temporarily gone out of service due to exceptional customer demand, but insisted that Asda has not shut down any petrol stations completely. The company expects affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks underscore a important separation between profiteering and inventory control. When demand surges unexpectedly, as has happened in the wake of the regional tensions in the Middle East, retailers can struggle to keep up inventory levels despite making every effort. The Petrol Retailers Association corroborated this narrative, admitting isolated availability issues at “a handful of forecourts for one retailer” but asserting that supply across the UK is flowing normally. The body recommended drivers that there is no requirement to modify their regular shopping behaviour, indicating that accounts of supply issues have been exaggerated or isolated.
Middle Eastern instability driving wholesale costs
The sharp rise in petrol and diesel prices has been directly linked to escalating tensions in the Middle East, subsequent to military strikes between the US, Israel and Iran approximately a month ago. These geopolitical developments have created significant uncertainty in worldwide petroleum markets, forcing wholesale costs up and forcing retailers to hand on rises to consumers at fuel stations. The RAC has noted that unleaded petrol has risen by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts caution that ongoing tensions could push prices higher still, notably if supply routes through essential bottlenecks become blocked.
The scheduling of these cost rises has turned out to be particularly painful for British drivers approaching the Easter holidays. Families planning driving holidays encounter significantly higher fuel bills, with the cost of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles are affected even more severely, with a full tank now running to 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 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 |
Crude oil volatility and geopolitical factors
Global oil markets remain highly responsive to Middle Eastern developments, with crude prices reflecting investor concerns about possible disruptions to supply. The attacks on Iran have increased doubt about regional stability, prompting traders to demand risk premiums on petroleum contracts. Whilst current prices stay below the extraordinary peaks seen after Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts suggest that any further escalation in conflict could trigger additional price spikes, particularly if major transport corridors or production facilities experience disruption.
Government revenue and consumer impact
As petrol prices continue their upward trajectory, the government has found itself 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 receives identical duty per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this inconsistency, proposing that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own windfall from higher fuel prices.
The broader financial consequences go further than domestic spending limits to cover price increases across the entire economy. Elevated petrol prices flow through supply networks, influencing transport expenses for commodities and services. SMEs dependent on high-fuel activities encounter considerable challenges, with haulage companies and courier services facing major expense increases. Household purchasing power falls as people channel spending toward petrol pumps rather than different expenditures, possibly reducing GDP growth. The RAC has counselled vehicle owners to plan refuelling strategically and use price-comparison applications to identify the lowest-priced local fuel retailers, though such measures offer only marginal relief against the broader price surge.
- Government collects set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise throughout various sectors and industries
- Consumer non-essential 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 implement a more planned strategy to refuelling. The RAC has highlighted the value of mapping out trips methodically and utilising price-comparison applications to find the lowest-priced fuel retailers in their local region. Whilst such measures offer only modest savings, they can add up considerably over time. Drivers should also consider whether unnecessary trips can be deferred or consolidated to reduce overall fuel consumption. For those facing the Easter holidays, booking travel plans in advance and filling up at cheaper locations before undertaking longer drives could aid in lessening the burden of increased fuel costs on vacation finances.
- Use petrol price finder tools to find the most affordable nearby petrol stations before refuelling
- Combine journeys where possible and postpone unnecessary journeys to lower fuel usage
- Fill up at cheaper locations before embarking on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and minimise overall expenditure
