Petrol prices have exceeded the 150p-per-litre threshold for the first occasion in nearly two years, heightening the argument over whether fuel retailers are taking advantage of rocketing oil costs for profit. The average price for unleaded petrol climbed above the symbolic threshold on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The steep rises, which have pushed up by £10 to the cost of filling a typical family car in only a month, follow military 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 strongly denied accusations of profiteering, instead blaming ministers for unjustly blaming at petrol station owners struggling with restricted supply networks.
The 150p ceiling surpassed
The milestone marks a important juncture 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 complete tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has termed the breach of 150p as an unwanted milestone that will affect households already dealing with the rising cost of living. The increases are remarkably poorly timed, arriving just as families start planning their Easter trips and summer holidays, when demand for fuel traditionally peaks.
Whilst the present prices stay below the record highs recorded following Russia’s invasion of Ukraine in 2022, the swift increase has reignited concerns about cost and availability. Diesel has fared even worse, climbing 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 identical timeframe. With supply chains already strained 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 drivers across the country.
- Unleaded fuel now 17p costlier per litre than pre-conflict levels
- 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 stay below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back on state claims
The escalating row over fuel pricing has revealed a widening divide between the government and forecourt operators, who argue they are being unjustly blamed for circumstances beyond their control. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid the cost escalation. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and large retailers like Asda have insisted that margins have truly narrowed during the recent spike, leaving scant scope for profiteering even if operators were inclined to do so. This mutual recrimination reflects the public concern surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The Competition and Markets Authority has announced it will intensify monitoring of the petrol market, signalling that regulatory oversight will increase. Yet fuel retailers contend this heightened oversight misses the fundamental point: they are responding to real supply limitations and wholesale price movements, not creating artificial scarcity for financial gain. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and value-added tax, potentially earning more from the price spike than fuel retailers. This remark has introduced an awkward element to the debate, suggesting that government criticism may disregard the state’s own economic stakes in higher fuel prices.
Asda’s defence and procurement pressures
As the UK’s second-biggest fuel supplier, Asda has found itself at the heart of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is taking advantage of the situation, stressing instead that fuel volumes have increased substantially, with demand far exceeding available supply. He conceded that a small number of pumps have temporarily gone out of service due to unusually high customer demand, but maintained 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 short-term rather than long-term.
Leighton’s observations highlight a important difference between profiteering and inventory control. When demand spikes dramatically, as took place in the wake of the Middle East tensions, retailers can struggle to keep up inventory levels despite making every effort. The Association of Petrol Retailers backed up this account, acknowledging sporadic supply problems at “a handful of forecourts for one retailer” but maintaining that supply across the UK is functioning smoothly. The association recommended drivers that there is no requirement to modify their regular purchasing habits, implying that accounts of supply issues have been inflated or localised.
Middle Eastern conflicts driving wholesale prices
The notable surge in petrol and diesel prices has been closely connected to rising conflict in the Middle East, following military strikes between the US, Israel and Iran about a month prior. These geopolitical developments have generated considerable instability in worldwide petroleum markets, driving wholesale prices higher and compelling retailers to pass increases through to consumers on the forecourt. The RAC has recorded that standard petrol 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 push prices higher still, particularly if transport corridors through critical chokepoints become blocked.
The scheduling of these cost rises has turned out to be especially difficult for British motorists approaching the Easter break. Families planning road trips 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 before. Diesel cars are affected to an even greater extent, with a complete fill-up now costing over £97, constituting 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 family finances 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 |
Crude oil fluctuations plus geopolitical factors
Global oil sectors remain highly sensitive to Middle Eastern events, with crude prices reflecting investor concerns about possible disruptions to supply. The attacks on Iran have heightened doubt about stability in the region, leading traders to require premium rates on petroleum contracts. 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 additional escalation in conflict could spark further price increases, particularly if major transport corridors or production facilities experience disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has found itself in an awkward position. Whilst ministers have publicly criticised fuel retailers for potential profiteering, the Treasury has discreetly gained considerably from the spike in fuel costs. Excise duty on fuel remains fixed regardless of the wholesale cost, meaning the government receives identical duty per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this inconsistency, proposing that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own gains from elevated petrol costs.
The more extensive economic implications go further than personal family finances to encompass price increases throughout the wider economy. Increased fuel expenses feed through distribution networks, influencing transport expenses for commodities and services. Smaller enterprises relying on fuel-intensive operations experience significant difficulty, with haulage companies and logistics providers bearing substantial cost rises. Household purchasing power declines as people channel spending toward petrol pumps rather than different expenditures, potentially dampening GDP growth. The RAC has recommended drivers to schedule fuel purchases carefully and use price-comparison applications to locate the cheapest local forecourts, though such measures offer only marginal relief against the broader price surge.
- Government collects set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures intensify as transport costs rise throughout various sectors and industries
- Consumer discretionary spending falls as household budgets focus on necessary fuel spending
What drivers should do at present
With petrol prices showing no immediate signs of retreating, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has emphasised the importance of carefully planning journeys and utilising price-comparison applications to identify the cheapest forecourts in their local region. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers ought to also think about whether non-essential journeys can be deferred or consolidated to minimise overall fuel expenditure. For those preparing for the Easter break, reserving travel arrangements early and filling up at cheaper locations before undertaking longer drives could help mitigate the impact of increased fuel costs on vacation finances.
- Use petrol price finder tools to find the most affordable nearby petrol stations before refuelling
- Merge trips where feasible and defer 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 maximise fuel efficiency and minimise overall expenditure
