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 taking advantage of surging oil costs for financial gain. The average price for standard petrol rose past the symbolic threshold on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The notable jumps, which have increased by around £10 to the price of topping up a typical family car in only a month, follow regional conflict in the Middle East that broke out a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of excessive profit-taking, instead criticising ministers for wrongly accusing at forecourt operators struggling with limited supply chains.
The 150p barrier breached
The milestone marks a significant moment for British motorists, who have seen fuel costs climb steadily since the Middle East tensions began. For a typical family car requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a full tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has characterised the breach of 150p as an unwanted milestone that will affect households already grappling with the rising cost of living. The increases are remarkably poorly timed, arriving just as families commence planning their Easter getaways and summer holidays, when demand for fuel conventionally surges.
Whilst the current prices stay below the record highs recorded after Russia’s attack on Ukraine in 2022, the swift increase has revived worries regarding cost and availability. Diesel has performed considerably worse, climbing 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s findings reveals that petrol has increased 17p per litre in the same period. With supply chains already strained and some petrol stations reporting brief shutdowns caused by exceptional demand, the combination of elevated costs and potential availability issues risks worsen challenges for motorists throughout the nation.
- Unleaded petrol now 17p costlier per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since the tensions started
- Filling up a family car costs roughly £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retailers challenge on government accusations
The intensifying row over fuel pricing has exposed a widening divide between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted progressively confrontational 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 counterproductive. The Petrol Retailers Association and major chains like Asda have insisted that margins have actually compressed 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 significantly affect household budgets and public perception of government competence.
The CMA has announced it will strengthen monitoring of the fuel sector, signalling that regulatory oversight will increase. Yet retailers argue this increased scrutiny misses the core issue: they are reacting to genuine supply constraints and wholesale price movements, not engineering false shortages for financial gain. Asda’s Allan Leighton highlighted that the government itself benefits substantially from fuel duty and value-added tax, potentially earning more from the price surge than retailers do. This remark has introduced an uncomfortable dimension to the debate, implying that government criticism may overlook the state’s own financial interests in elevated fuel costs.
Asda’s defence and procurement pressures
As the UK’s second largest fuel supplier, Asda has found itself at the heart of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is taking advantage of the situation, stressing instead that fuel volumes have surged significantly, with demand far exceeding available supply. He acknowledged that a small number of pumps have temporarily gone out of service due to exceptional customer demand, but maintained 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 short-term rather than long-term.
Leighton’s remarks emphasise a important difference between profiteering and supply management. When demand increases sharply, as took place in the wake of the regional tensions in the Middle East, retailers may find it challenging to keep up stock levels despite their best efforts. The Association of Petrol Retailers supported this account, recognising isolated availability issues at “a handful of forecourts for one retailer” but asserting that supply across the UK is functioning smoothly. The body advised drivers that there is no reason to alter their usual purchasing habits, implying that reports of shortages are overstated or localised.
Middle Eastern instability pushing wholesale prices
The marked increase in petrol and diesel prices has been firmly tied to escalating tensions in the Middle East, in the wake of armed operations between the US, Israel and Iran approximately a month ago. These regional shifts have generated considerable instability in global oil markets, forcing wholesale costs up and forcing retailers to pass increases through to consumers at the pump. The RAC has noted that standard petrol has increased by 17p per litre since the conflict began, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that additional geopolitical disruption could force prices up still, particularly if supply routes through critical chokepoints become interrupted.
The scheduling of these cost rises has turned out to be particularly painful for British drivers approaching the Easter break. Families planning driving holidays encounter significantly higher fuel bills, with the expense of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month before. 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 crossing of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the combined effect on family finances during what should 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 geopolitical factors
Global oil markets remain highly responsive to Middle Eastern events, with crude prices mirroring investor worries about potential supply disruptions. The attacks on Iran have increased doubt about regional stability, leading traders to demand premium rates on petroleum agreements. Whilst current prices remain below the extraordinary peaks seen after Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts suggest that any further escalation in hostilities could trigger additional price spikes, especially if major transport corridors or manufacturing plants face disruption.
Government revenue and consumer impact
As petrol prices continue their upward trajectory, the government has found itself in an difficult situation. Whilst government officials have openly condemned fuel retailers for potential profiteering, the Treasury has discreetly gained considerably from the spike in fuel costs. 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 chief executive Allan Leighton deliberately highlighted this inconsistency, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own windfall from higher fuel prices.
The wider economic implications extend beyond domestic spending limits to include price increases throughout the wider economy. Increased fuel expenses feed through supply networks, influencing delivery costs for products and services. Small businesses relying on fuel-heavy processes experience significant difficulty, with freight operators and courier services facing major expense increases. Household purchasing power declines as families redirect money toward petrol pumps rather than different expenditures, likely slowing economic growth. The RAC has counselled vehicle owners to organise refuelling efficiently and utilise fuel-price apps to identify the lowest-priced local fuel retailers, though these approaches offer only marginal relief against the wider price increase.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as transport costs rise throughout various sectors and industries
- Consumer non-essential spending falls as household budgets focus on necessary fuel spending
What motorists ought to 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 highlighted the value of planning journeys carefully and leveraging price-comparison platforms to find the lowest-priced fuel retailers in their surrounding neighbourhood. Whilst such measures offer only modest savings, they can build substantially over time. Drivers ought to also think about whether non-essential journeys can be postponed or combined to minimise overall fuel expenditure. For those dealing with the Easter period, booking travel plans in advance and topping up at budget-friendly forecourts before undertaking longer drives could help mitigate the impact of increased fuel costs on holiday spending.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before filling up
- Combine journeys where feasible and defer non-essential trips to reduce consumption
- Fill up at cheaper locations before setting out on longer Easter holiday journeys
- Map your journey with care to maximise fuel efficiency and minimise overall expenditure
