Petrol prices have breached the 150p-per-litre milestone for the first occasion in almost two years, intensifying the discussion over whether fuel retailers are capitalising on rocketing oil costs for profit. The typical cost for standard petrol climbed above the symbolic threshold on Friday, whilst diesel surged past 177p, based on figures from the RAC. The notable jumps, which have added nearly £10 to the price of topping up a typical family car in only a month, follow regional conflict in the Middle East that erupted 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 criticising ministers for wrongly accusing at petrol station owners struggling with restricted supply networks.
The 150p ceiling surpassed
The milestone marks a important juncture for British motorists, who have watched 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 a month earlier. The RAC has described the breach of 150p as an unwanted milestone that will sting households already struggling with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families begin planning their Easter trips and summer breaks, when fuel demand conventionally surges.
Whilst the present prices remain below the record highs witnessed following Russia’s attack on Ukraine in 2022, the swift increase has reignited concerns about 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 petrol has risen 17p per litre in the same period. With distribution networks already stretched and some petrol stations experiencing brief shutdowns caused by exceptional demand, the combination of elevated costs and possible supply problems risks worsen challenges for motorists throughout the nation.
- 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 up a family car costs approximately £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers push back on official allegations
The escalating row over fuel pricing has highlighted a widening divide between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances outside their remit. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers throughout the price surge. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and major chains like Asda have insisted that margins have truly narrowed during the current increase, leaving little room for profiteering even if operators were willing to do so. This blame-shifting reflects the political sensitivity surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The CMA has stated it will strengthen oversight of the fuel sector, signalling that regulatory oversight will tighten. Yet retailers contend this increased scrutiny misses the fundamental point: they are responding to real supply limitations and wholesale price fluctuations, not creating artificial scarcity for profit. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and VAT, possibly gaining more from the price spike than fuel retailers. This observation has introduced an awkward element to the discussion, implying that criticism from Westminster may overlook the state’s own economic stakes in elevated fuel costs.
Asda’s defence and procurement pressures
As the UK’s second largest fuel supplier, Asda has positioned 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 acknowledged that a small number of pumps have briefly stopped operating due to exceptional customer demand, but maintained that Asda has not closed any forecourts entirely. The company expects affected pumps to resume service following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements emphasise a key difference between profiteering and inventory control. When demand surges unexpectedly, as has happened following the regional tensions in the Middle East, retailers can struggle to maintain standard stock levels despite making every effort. The Petrol Retailers Association corroborated this narrative, recognising sporadic supply problems at “a handful of forecourts for one retailer” but asserting that overall UK supply is functioning smoothly. The body counselled drivers that there is no need to alter their usual buying patterns, implying that reports of shortages have been exaggerated or localised.
Middle East conflicts pushing bulk pricing
The sharp rise in petrol and diesel prices has been directly linked to mounting instability 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 international energy markets, pushing wholesale costs upwards and compelling retailers to transfer costs to consumers at the pump. The RAC has noted that standard petrol has climbed by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts caution that further regional instability could drive prices upward still, notably if distribution channels through key passages become blocked.
The timing of these price increases has turned out to be especially difficult for British drivers approaching the Easter break. Families organising driving holidays face significantly higher petrol costs, with the expense of filling a typical family car now exceeding £82 for standard petrol—roughly £9.50 more than just a month earlier. Diesel cars are impacted even more severely, with a full tank now running to over £97, representing a £19 rise. The RAC’s Simon Williams described the breaching of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the combined effect 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 |
Oil market fluctuations plus political tensions
Global oil markets remain highly sensitive to Middle Eastern events, with crude prices reflecting investor worries about possible supply disruptions. The attacks on Iran have increased uncertainty about regional stability, 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 reached record highs—the trajectory is concerning. Energy analysts suggest that any further escalation in hostilities could trigger additional price spikes, particularly if major shipping routes or manufacturing plants face disruption.
Public finances and impact on consumers
As petrol prices maintain their upward climb, the government has found itself 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 stays constant regardless of the market price, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this inconsistency, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own gains from elevated petrol costs.
The broader financial consequences transcend personal family finances to include price increases across all economic sectors. Increased fuel expenses pass through supply networks, affecting delivery costs for commodities and services. Small businesses relying on fuel-intensive operations encounter considerable challenges, with transport firms and delivery services absorbing significant cost increases. Consumer spending power declines as households allocate funds toward petrol pumps rather than alternative spending, potentially dampening GDP growth. The RAC has recommended motorists to organise refuelling efficiently and employ price-checking tools to find the lowest-priced local fuel retailers, though these steps deliver modest help against the wider price increase.
- Government collects fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise across all sectors and industries
- Consumer non-essential spending falls as family finances prioritise necessary fuel spending
What drivers ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being urged to take a more calculated approach to refuelling. The RAC has emphasised the importance of carefully planning journeys and using price-comparison tools to locate the most affordable petrol stations in their local region. Whilst such measures offer only modest savings, they can accumulate meaningfully over time. Drivers ought to also think about whether non-essential journeys can be postponed or combined to minimise overall fuel expenditure. For those facing the Easter holidays, reserving travel arrangements early and refuelling at lower-cost stations before setting out on extended journeys could assist in reducing the effect of higher petrol rates on holiday budgets.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before refuelling
- Combine journeys where possible and postpone non-essential trips to reduce consumption
- Fill up at more affordable stations before embarking on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and minimise overall expenditure
