Petrol prices have exceeded the 150p-per-litre mark for the first occasion in nearly two years, fuelling the discussion over whether petrol stations are capitalising on soaring oil costs for financial gain. The average price for standard petrol climbed above the important mark on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The steep rises, which have added nearly £10 to the cost of filling a typical family car in just a month, follow military tensions in the Middle East that broke out a month ago when the US and Israel conducted strikes on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of excessive profit-taking, instead blaming ministers for wrongly accusing at forecourt operators battling constrained supply chains.
The 150p barrier breached
The milestone constitutes a important juncture for British motorists, who have watched fuel costs rise consistently since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now encountering costs exceeding £82 for a full 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 struggling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families commence planning their Easter trips and summer holidays, when fuel demand typically reaches its highest levels.
Whilst the current prices remain below the record highs witnessed following Russia’s invasion of Ukraine in 2022, the swift increase has reignited concerns about affordability and accessibility. Diesel has fared even worse, climbing 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s analysis reveals that petrol has increased 17p per litre in the same period. With supply chains already stretched and some petrol stations experiencing brief shutdowns caused by unusually high demand, the combination of elevated costs and potential availability issues threatens to compound difficulties for drivers across the country.
- Unleaded petrol now 17p more expensive per litre than pre-conflict levels
- Diesel prices have increased by 35p per litre since the tensions started
- Filling up a family car costs roughly £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back against official allegations
The intensifying row over fuel pricing has exposed a growing rift between the government and forecourt operators, who argue they are being wrongly targeted for circumstances beyond their control. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers throughout the pricing spike. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and major chains like Asda have insisted that margins have genuinely tightened during the recent spike, leaving scant scope for profiteering even if operators were willing to do so. This finger-pointing reflects the public concern surrounding fuel costs, which directly impact household budgets and consumer views of government competence.
The Competition and Markets Authority has stated it will intensify monitoring of the fuel sector, indicating that regulatory oversight will increase. Yet retailers argue 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 pointed out that the government itself benefits substantially from fuel duty and VAT, potentially earning more from the price surge than retailers do. This observation has introduced an uncomfortable dimension to the debate, suggesting that criticism from Westminster may overlook the state’s own economic stakes in higher fuel prices.
Asda’s defence and procurement difficulties
As the UK’s second largest fuel retailer, Asda has positioned itself at the heart of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have increased substantially, with demand far exceeding available supply. He acknowledged that a small number of pumps have briefly stopped operating due to exceptional customer demand, but insisted that Asda has not closed any forecourts entirely. 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 underscore a key difference between profit-seeking and inventory control. When demand spikes dramatically, as has happened after the Middle East tensions, retailers may find it challenging to maintain normal stock levels despite making every effort. The Association of Petrol Retailers corroborated this narrative, recognising sporadic supply problems at “a small number of forecourts for one retailer” but insisting that supply across the UK is flowing normally. The association advised drivers that there is no requirement to modify their regular purchasing habits, suggesting that accounts of supply issues are overstated or isolated.
Middle Eastern tensions driving wholesale prices
The sharp rise in petrol and diesel prices has been closely connected to escalating tensions in the Middle East, in the wake of military strikes between the US, Israel and Iran approximately a month ago. These political changes have produced substantial volatility in worldwide petroleum markets, pushing wholesale costs upwards and obliging retailers to pass increases through to consumers at the pump. The RAC has recorded that standard petrol has increased by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts alert that ongoing tensions could force prices up still, particularly if distribution channels through critical chokepoints become blocked.
The timing of these cost rises has turned out to be particularly painful for British motorists heading into the Easter break. Families organising road trips encounter considerably elevated fuel bills, with the expense 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 affected to an even greater extent, with a complete fill-up now costing over £97, representing a £19 increase. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the cumulative impact on household budgets during what should be a period 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 geopolitical factors
Global oil sectors remain highly sensitive to Middle Eastern developments, with crude prices reflecting investor concerns about potential supply disruptions. The attacks on Iran have increased doubt about regional stability, prompting traders to require risk premiums on petroleum agreements. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s invasion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is concerning. Energy analysts suggest that any further escalation in conflict could trigger additional price spikes, particularly if major transport corridors 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 difficult situation. Whilst government officials have openly condemned fuel retailers for potential profiteering, 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 receives identical duty per litre no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted 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 broader financial consequences go further than individual household budgets to cover inflationary forces across all economic sectors. Increased fuel expenses flow through supply chains, impacting transport expenses for products and services. Smaller enterprises dependent on fuel-heavy processes face particular hardship, with transport firms and logistics providers bearing substantial cost rises. Household purchasing power falls as households allocate funds into fuel purchases rather than other purchases, possibly reducing economic growth. The RAC has advised drivers to schedule fuel purchases carefully and employ price-checking tools to locate the most affordable nearby petrol stations, though these approaches provide limited assistance against the wider price increase.
- Government collects set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as transport costs rise across all sectors and industries
- Consumer discretionary spending declines as family finances focus on necessary fuel spending
What drivers ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being urged to implement a more planned strategy to refuelling. The RAC has highlighted the value of mapping out trips methodically and leveraging price-comparison platforms to find the lowest-priced fuel retailers in their local region. Whilst such measures offer only modest savings, they can build substantially over time. Drivers may also wish to evaluate whether unnecessary trips can be postponed or combined to lower total fuel usage. For those preparing for the Easter break, booking travel plans in advance and topping up at budget-friendly forecourts before undertaking longer drives could aid in lessening the burden of increased fuel costs on holiday budgets.
- Use petrol price finder tools to find the most affordable nearby petrol stations before refuelling
- 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
- Plan routes carefully to maximise fuel efficiency and minimise overall expenditure
