Petrol prices have breached the 150p-per-litre threshold for the first occasion in nearly two years, intensifying the discussion over whether fuel retailers are capitalising on surging oil costs for profit. The average price for standard petrol climbed above the symbolic threshold on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The sharp increases, which have added nearly £10 to the price of topping up a typical family car in just a month, follow regional conflict in the Middle East that flared up a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has firmly rejected accusations of excessive profit-taking, instead blaming ministers for unfairly “pointing the finger” at forecourt operators struggling with limited supply chains.
The 150p barrier breached
The milestone represents a significant moment for British motorists, who have watched fuel costs climb steadily since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a full tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has described the breach of 150p as an unwelcome milestone that will sting households already grappling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families start planning their Easter getaways and summer breaks, when demand for fuel traditionally peaks.
Whilst the current prices stay below the record highs witnessed following Russia’s invasion of Ukraine in 2022, the swift increase has revived worries regarding affordability and accessibility. Diesel has struggled even more, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s findings reveals that unleaded petrol has increased 17p per litre in the same period. With distribution networks already stretched and some forecourts reporting temporary pump closures due to exceptional demand, the mix of higher prices and potential availability issues threatens to worsen challenges for motorists throughout the nation.
- Unleaded fuel now 17p costlier per litre than levels before the conflict
- Diesel prices have increased 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 increasing at an alarming rate
Retailers push back on state claims
The escalating row over fuel pricing has exposed a growing rift between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers throughout the pricing spike. However, fuel retailers have hit back, 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 current increase, leaving little room for profiteering even if operators were disposed to act. This blame-shifting reflects the political sensitivity surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The CMA has announced it will strengthen oversight of the petrol market, signalling that regulatory oversight will tighten. Yet fuel retailers argue this heightened oversight misses the fundamental point: they are responding to real supply limitations and wholesale price fluctuations, not engineering false shortages for financial gain. Asda’s Allan Leighton pointed out that the state profits significantly from fuel duty and VAT, possibly gaining more from the price surge than fuel retailers. This observation has introduced an uncomfortable dimension to the debate, suggesting that criticism from Westminster may overlook the government’s own economic stakes in higher fuel prices.
Asda’s defence and procurement difficulties
As the UK’s second-biggest fuel retailer, Asda has positioned itself at the centre 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 surged significantly, with demand substantially outstripping available supply. He conceded that a small number of pumps have briefly stopped operating due to unusually high customer demand, but insisted that Asda has not shut down any petrol stations completely. The company expects affected pumps to resume service following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks emphasise a important difference between profit-seeking and inventory control. When demand spikes dramatically, as has happened following the Middle East tensions, retailers can find it difficult to keep up inventory levels in spite of their efforts. The Petrol Retailers Association supported this account, acknowledging isolated availability issues at “a small number of forecourts for one retailer” but maintaining that overall UK supply is functioning smoothly. The association recommended drivers that there is no need to modify their regular buying patterns, implying that reports of shortages have been inflated or confined to specific areas.
Middle Eastern conflicts increasing wholesale costs
The sharp rise in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, in the wake of armed operations between the US, Israel and Iran approximately a month ago. These geopolitical developments have generated considerable instability in worldwide petroleum markets, forcing wholesale costs up and compelling retailers to hand on rises to consumers at the pump. The RAC has documented that standard petrol has increased by 17p per litre since the conflict began, whilst diesel has risen even more sharply by 35p per litre. Analysts alert that further regional instability could force prices up still, notably if supply routes through key passages become blocked.
The timing of these cost rises has proven especially difficult for British drivers heading into the Easter break. Families planning road trips face considerably elevated fuel bills, with the cost of topping up a standard family vehicle now exceeding £82 for standard petrol—roughly £9.50 higher than just a month earlier. Diesel cars are affected 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 household budgets during what ought to 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 |
Crude oil volatility and political tensions
Global oil markets stay highly responsive to Middle Eastern events, with crude prices mirroring investor concerns about potential disruptions to supply. The attacks on Iran have increased doubt about regional stability, leading traders to require risk premiums on petroleum contracts. Whilst current prices stay below the exceptional highs witnessed following Russia’s military incursion of Ukraine—when wholesale costs reached record highs—the trajectory is concerning. Energy analysts suggest that any further escalation in conflict could trigger additional price spikes, particularly if major shipping routes or manufacturing plants face disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has found itself in an difficult situation. 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 stays constant regardless of the wholesale cost, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this contradiction, suggesting that before accusing retailers of exploiting the crisis, the government ought to recognise its own gains from elevated petrol costs.
The wider financial consequences extend beyond personal family finances to cover inflation pressures across the entire economy. Elevated petrol prices pass through supply chains, impacting delivery costs for goods and services. Small businesses dependent on fuel-heavy processes encounter considerable challenges, with freight operators and delivery services facing major expense increases. Consumer purchasing capacity declines as families redirect money toward petrol pumps rather than other purchases, possibly reducing GDP growth. The RAC has recommended motorists to plan refuelling strategically and utilise fuel-price apps to find the lowest-priced local fuel retailers, though these approaches deliver modest help against the overall cost escalation.
- Government collects set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise throughout various sectors and industries
- Consumer non-essential spending falls as household budgets prioritise essential fuel purchases
What motorists ought to do now
With petrol prices displaying no immediate prospect of falling, motorists are being urged to adopt a more strategic approach to refuelling. The RAC has stressed the significance of mapping out trips methodically and utilising price-comparison applications to find the lowest-priced fuel retailers in their local area. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers should also consider whether discretionary journeys can be delayed or merged to lower total fuel usage. For those preparing for the Easter break, booking travel plans in advance and filling up at cheaper locations before undertaking longer drives could aid in lessening the burden of elevated pump prices on vacation finances.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before refuelling
- Merge trips where feasible and defer non-essential trips to lower fuel usage
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and minimise overall expenditure
