Petrol prices have surpassed the 150p-per-litre milestone for the first time in nearly two years, heightening the argument over whether fuel retailers are capitalising on rocketing oil costs for profit. The typical cost for unleaded petrol rose past the symbolic threshold on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The steep rises, which have added nearly £10 to the price of topping up a typical family car in just a month, follow geopolitical tensions in the region that flared up a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has firmly rejected accusations of profiteering, instead blaming ministers for wrongly accusing at forecourt operators struggling with restricted supply networks.
The 150p level exceeded
The milestone represents a significant moment for British motorists, who have seen fuel costs increase progressively since the Middle East tensions began. For a standard family vehicle requiring a 55-litre fuel 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 termed 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 begin planning their Easter trips and summer holidays, when demand for fuel conventionally surges.
Whilst the current prices remain below the record highs recorded following Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived worries regarding cost and availability. Diesel has performed considerably worse, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis reveals that unleaded petrol has increased 17p per litre in the same period. With supply chains already strained and some petrol stations experiencing brief shutdowns caused by exceptional demand, the mix of elevated costs and potential availability issues risks compound difficulties for drivers throughout the nation.
- Unleaded petrol now 17p more expensive per litre than levels before the conflict
- Diesel prices have increased 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 rising at concerning rate
Retail sector pushes back against official allegations
The intensifying row over fuel pricing has highlighted a deepening split 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 amid the price surge. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and leading operators like Asda have insisted that margins have actually compressed during the recent spike, leaving little room for profiteering even if operators were willing to do so. This blame-shifting reflects the political importance surrounding fuel costs, which directly impact household budgets and public perception of government competence.
The CMA has stated it will intensify monitoring of the petrol market, indicating that regulatory scrutiny will increase. Yet fuel retailers contend this increased scrutiny overlooks the core issue: they are reacting to real supply limitations and wholesale price fluctuations, not engineering false shortages for financial gain. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and value-added tax, potentially earning more from the price spike than retailers do. This observation has introduced an uncomfortable dimension to the discussion, implying that criticism from Westminster may overlook the state’s own economic stakes in elevated fuel costs.
Asda’s defence and supply difficulties
As the UK’s second-biggest fuel retailer, Asda has found itself at the centre of the pricing row. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, emphasising instead that fuel volumes have increased substantially, 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 anticipates the affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks emphasise a critical distinction between profiteering and supply management. When demand increases sharply, as has occurred in the wake of the Middle East tensions, retailers can struggle to maintain standard inventory levels despite making every effort. The Petrol Retailers Association supported this claim, acknowledging isolated availability issues at “a handful of forecourts for one retailer” but maintaining that the UK’s overall supply is flowing normally. The body recommended drivers that there is no requirement to alter their usual buying patterns, indicating that claims of stock problems have been exaggerated or localised.
Middle East conflicts driving wholesale costs
The notable surge in petrol and diesel prices has been directly linked to rising conflict in the Middle East, subsequent to military strikes between the US, Israel and Iran approximately a month ago. These political changes have produced substantial volatility in international energy markets, pushing wholesale costs upwards and obliging retailers to pass increases through to consumers at the pump. The RAC has documented that regular fuel has risen by 17p per litre since hostilities started, whilst diesel has increased even more dramatically by 35p per litre. Analysts caution that ongoing tensions could drive prices upward still, especially should distribution channels through key passages become blocked.
The timing of these cost rises has proven particularly painful for British motorists heading into the Easter holidays. Families planning road trips face significantly higher fuel bills, with the cost of filling a typical family car now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles are impacted even more severely, with a full tank now costing over £97, constituting a £19 increase. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” underlining the cumulative impact on family finances 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 sectors remain highly sensitive to Middle Eastern developments, with crude prices reflecting investor concerns about potential disruptions to supply. The attacks on Iran have heightened doubt about regional stability, prompting traders to require risk premiums on petroleum agreements. Whilst current prices remain below the extraordinary peaks witnessed following Russia’s invasion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is concerning. Energy analysts indicate that any additional escalation in hostilities could trigger further price increases, particularly if major shipping routes or production facilities experience disruption.
Government revenue and impact on consumers
As petrol prices maintain their upward climb, the government has found itself in an awkward position. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has quietly benefited substantially from the spike in fuel costs. 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 chief executive Allan Leighton pointedly noted this inconsistency, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own windfall from higher fuel prices.
The wider economic effects go further than personal family finances to cover inflationary forces throughout the wider economy. Elevated petrol prices flow through distribution networks, influencing transport expenses for commodities and services. SMEs relying on fuel-intensive operations encounter considerable challenges, with haulage companies and delivery services bearing substantial cost rises. Consumer spending power falls as people channel spending to fuel stations rather than other purchases, possibly reducing economic growth. The RAC has counselled drivers to schedule fuel purchases carefully and utilise fuel-price apps to identify the lowest-priced local fuel retailers, though these approaches deliver modest help against the broader price surge.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures increase as transport costs rise throughout various sectors and industries
- Consumer discretionary spending declines as household budgets prioritise essential fuel purchases
What drivers should do now
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 stressed the significance of carefully planning journeys and utilising price-comparison applications to locate the most affordable petrol stations in their local region. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers should also consider whether unnecessary trips can be deferred or consolidated to lower total fuel usage. For those preparing for the Easter break, 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 holiday budgets.
- Use petrol price finder tools to locate the cheapest local forecourts before filling up
- Combine journeys where feasible and defer non-essential trips 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
