Petrol prices have surpassed the 150p-per-litre threshold for the first occasion in almost two years, intensifying the discussion over whether petrol stations are exploiting rocketing oil costs for profit. The typical cost for standard petrol exceeded the important mark on Friday, whilst diesel surged past 177p, according to figures from the RAC. The notable jumps, which have increased by around £10 to the price of topping up a standard family vehicle in only a month, follow regional conflict in the Middle East that broke out a month ago when the US and Israel conducted strikes on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of excessive profit-taking, instead pointing to ministers for unfairly “pointing the finger” at petrol station owners facing restricted supply networks.
The 150p ceiling surpassed
The milestone constitutes a significant moment for British motorists, who have seen fuel costs increase progressively since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre tank, drivers are now encountering costs 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 dealing with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families start planning their Easter getaways and summer breaks, when demand for fuel traditionally peaks.
Whilst the present prices stay below the peak levels witnessed following Russia’s attack on Ukraine in 2022, the rapid acceleration has revived worries regarding cost and availability. Diesel has performed considerably worse, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s findings shows that petrol has risen 17p per litre in the same period. With distribution networks already stretched and some forecourts experiencing brief shutdowns due to unusually high demand, the combination of higher prices and potential availability issues risks worsen challenges for drivers throughout the nation.
- Unleaded fuel now 17p more expensive per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since tensions began
- Filling up a family car costs roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming 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 unfairly scapegoated for circumstances beyond their control. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers during the price surge. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and leading operators like Asda have insisted that margins have genuinely tightened during the latest surge, leaving scant scope for profiteering even if operators were inclined to do so. This finger-pointing reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The CMA has stated it will strengthen oversight of the fuel sector, signalling that regulatory oversight will increase. Yet fuel retailers contend this increased scrutiny misses the fundamental point: they are reacting to real supply limitations and wholesale price fluctuations, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and VAT, possibly gaining more from the price surge than fuel retailers. This observation has added an awkward element to the discussion, suggesting that criticism from Westminster may overlook the government’s own economic stakes in elevated fuel costs.
Asda’s defence and supply difficulties
As the UK’s second-biggest fuel retailer, Asda has positioned itself at the centre of the pricing row. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have surged significantly, with demand far exceeding available supply. He acknowledged that a small number of pumps have briefly stopped operating due to unusually high customer demand, but maintained that Asda has not shut down any petrol stations completely. The company expects affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s remarks emphasise a important separation between profit-seeking and supply management. When demand increases sharply, as has occurred in the wake of the regional tensions in the Middle East, retailers can struggle to keep up inventory levels despite making every effort. The Association of Petrol Retailers backed up this claim, admitting sporadic supply problems at “a small number of forecourts for one retailer” but insisting that supply across the UK is functioning smoothly. The association recommended drivers that there is no requirement to modify their regular purchasing habits, suggesting that accounts of supply issues are overstated or localised.
Middle East conflicts driving wholesale prices
The marked increase in petrol and diesel prices has been closely connected to rising conflict in the Middle East, subsequent to combat actions between the US, Israel and Iran about a month prior. These political changes have produced substantial volatility in international energy markets, pushing wholesale costs upwards and obliging retailers to transfer costs to consumers at fuel stations. The RAC has recorded that unleaded petrol has increased by 17p per litre since the fighting commenced, 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 key passages become interrupted.
The timing of these cost rises has proven especially difficult for British drivers heading into the Easter break. Families organising driving holidays encounter considerably elevated petrol costs, with the expense of topping up a standard family vehicle now exceeding £82 for standard petrol—roughly £9.50 more than just a month earlier. Diesel cars are affected to an even greater extent, with a complete fill-up now costing over £97, representing a £19 rise. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” underlining the combined effect on household budgets during what should 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 |
Oil market volatility and geopolitical factors
Global oil sectors stay highly sensitive to Middle Eastern developments, with crude prices reflecting investor concerns about possible disruptions to supply. The attacks on Iran have heightened uncertainty about stability in the region, prompting traders to require premium rates on petroleum agreements. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s military incursion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts indicate that any further escalation in hostilities could spark further price increases, particularly if major shipping routes or production facilities experience disruption.
Public finances and impact on consumers
As petrol prices maintain their upward climb, the government has found itself in an difficult situation. Whilst ministers have publicly criticised fuel retailers for potential profiteering, the Treasury has quietly benefited substantially from the spike in fuel costs. Excise duty on fuel remains fixed regardless of the market price, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this contradiction, suggesting that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own gains from elevated petrol costs.
The broader financial consequences go further than personal family finances to encompass inflationary forces across the entire economy. Increased fuel expenses flow through supply networks, impacting delivery costs for goods and services. Small businesses reliant on fuel-intensive operations experience significant difficulty, with haulage companies and courier services bearing substantial cost rises. Consumer spending power diminishes as people channel spending to fuel stations rather than other purchases, likely slowing economic growth. The RAC has advised drivers to plan refuelling strategically and employ price-checking tools to find the lowest-priced local fuel retailers, though such measures offer only marginal relief 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 across all sectors and industries
- Consumer non-essential spending declines as family finances prioritise necessary fuel spending
What drivers should do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being advised to adopt a more strategic approach to refuelling. The RAC has stressed the significance of carefully planning journeys and leveraging price-comparison platforms 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 may also wish to evaluate whether discretionary journeys can be deferred or consolidated to reduce overall fuel consumption. For those dealing with the Easter period, reserving travel arrangements early and filling up at cheaper locations before embarking on longer trips 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 unnecessary journeys to lower fuel usage
- Fill up at more affordable stations before embarking on longer Easter holiday journeys
- Plan routes carefully to maximise fuel efficiency and reduce total costs
