Petrol prices have surpassed the 150p-per-litre milestone for the first time in almost two years, heightening the argument over whether petrol stations are capitalising on soaring oil costs for financial gain. The average price for unleaded petrol exceeded the symbolic threshold on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The steep rises, which have pushed up by £10 to the price of topping up a typical family car in only a month, follow geopolitical tensions in the region that flared up a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of profiteering, instead blaming ministers for wrongly accusing at petrol station owners facing limited supply chains.
The 150p threshold broken
The milestone marks 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 dealing with expenses exceeding £82 for a full tank of unleaded petrol—nearly £10 more than just a month earlier. The RAC has characterised the breach of 150p as an unwelcome milestone that will impact families already grappling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families start planning their Easter trips and summer breaks, when fuel demand typically reaches its highest levels.
Whilst the current prices stay below the record highs recorded after Russia’s attack on Ukraine in 2022, the swift increase has reignited worries regarding affordability and accessibility. Diesel has struggled even more, climbing 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s findings reveals that unleaded petrol has risen 17p per litre in the identical timeframe. With supply chains already stretched and some petrol stations reporting brief shutdowns caused by unusually high demand, the mix of elevated costs and potential availability issues risks worsen challenges for motorists across the country.
- Unleaded petrol now 17p costlier per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since the tensions started
- Filling up a family car costs approximately £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers challenge on state claims
The intensifying row over fuel pricing has exposed a growing rift between the government and forecourt operators, who argue they are being unjustly blamed for circumstances they cannot influence. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers during the pricing spike. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and large retailers like Asda have insisted that margins have actually compressed during the current increase, leaving scant scope for profiteering even if operators were inclined to do so. This blame-shifting reflects the public concern surrounding fuel costs, which significantly affect household budgets and consumer views of government competence.
The Competition and Markets Authority has announced it will intensify monitoring of the petrol market, signalling that regulatory oversight will tighten. Yet fuel retailers contend this increased scrutiny overlooks the core issue: they are responding to genuine supply constraints and wholesale price movements, not engineering false shortages for profit. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and value-added tax, potentially earning more from the price surge than retailers do. This observation has introduced an uncomfortable dimension to the debate, implying that criticism from Westminster may overlook the government’s own economic stakes in higher fuel prices.
Asda’s defence and supply challenges
As the UK’s second-biggest fuel retailer, Asda has found 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 surged significantly, with demand substantially outstripping available supply. He acknowledged 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 subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s observations underscore a key difference between profiteering and supply management. When demand spikes dramatically, as took place after the regional tensions in the Middle East, retailers can struggle to maintain normal stock levels in spite of their efforts. The Petrol Retailers Association backed up this narrative, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but asserting that the UK’s overall supply is operating as usual. The association recommended drivers that there is no reason to alter their usual buying patterns, suggesting that claims of stock problems have been exaggerated or localised.
Middle East instability pushing wholesale prices
The notable surge in petrol and diesel prices has been firmly tied to escalating tensions in the Middle East, in the wake of armed operations 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 compelling retailers to pass increases through to consumers on the forecourt. The RAC has noted that unleaded petrol has risen by 17p per litre since the conflict began, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that ongoing tensions could force prices up still, notably if supply routes through critical chokepoints become blocked.
The timing of these cost rises has turned out to be particularly painful for British drivers heading into the Easter holidays. Families planning road trips encounter significantly higher 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 before. Diesel cars are affected even more severely, with a full tank now running to over £97, constituting a £19 rise. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the cumulative impact on family finances 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 sensitive to Middle Eastern events, with crude prices mirroring investor concerns about potential supply disruptions. The attacks on Iran have increased uncertainty about stability in the region, prompting traders to demand premium rates on petroleum contracts. Whilst current prices remain below the extraordinary peaks witnessed following Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts suggest that any further 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 awkward position. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has quietly benefited substantially 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 no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own windfall from higher fuel prices.
The wider financial consequences transcend individual household budgets to cover inflationary forces across the entire economy. Higher fuel costs flow through distribution networks, affecting delivery costs for commodities and services. Small businesses reliant on fuel-intensive operations encounter considerable challenges, with transport firms and delivery services facing major expense increases. Consumer purchasing capacity diminishes as households allocate funds toward petrol pumps rather than other purchases, possibly reducing economic growth. The RAC has counselled drivers to plan refuelling strategically and employ price-checking tools to identify the cheapest local forecourts, though such measures offer only marginal relief against the overall cost escalation.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as shipping expenses rise across all sectors and industries
- Consumer non-essential spending declines as household budgets focus on necessary fuel spending
What drivers should do at present
With petrol prices displaying no immediate prospect of falling, motorists are being advised to implement a more planned strategy to refuelling. The RAC has emphasised the importance of mapping out trips methodically and leveraging price-comparison platforms to identify the cheapest forecourts in their local region. Whilst such approaches provide only marginal gains, they can add up considerably 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, arranging travel plans ahead of time and filling up at cheaper locations before embarking on longer trips could assist in reducing the effect of increased fuel costs on holiday budgets.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before filling up
- Combine journeys where feasible and postpone non-essential trips to lower fuel usage
- Fill up at cheaper locations before setting out on longer Easter holiday journeys
- Plan routes carefully to maximise fuel efficiency and reduce total costs
