Petrol prices have breached the 150p-per-litre threshold for the first occasion in almost two years, heightening the discussion over whether fuel retailers are exploiting surging oil costs for profit. The average price for standard petrol climbed above the important mark on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The sharp increases, which have increased by around £10 to the price of topping up a typical family car in only a month, follow military tensions in the Middle East that flared up a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of profiteering, instead pointing to ministers for wrongly accusing at petrol station owners struggling with constrained supply chains.
The 150p barrier breached
The milestone represents a significant moment for British motorists, who have seen fuel costs rise consistently since the Middle East tensions began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now dealing with expenses exceeding £82 for a complete tank of unleaded petrol—nearly £10 more than just a month earlier. The RAC has termed the breach of 150p as an unwanted milestone that will impact families already struggling with the rising cost of living. The increases are remarkably poorly timed, arriving just as families commence planning their Easter getaways and summer breaks, when fuel demand conventionally surges.
Whilst the current prices remain below the peak levels recorded following Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived concerns about 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 analysis shows that unleaded petrol has risen 17p per litre in the same period. With supply chains already stretched and some petrol stations experiencing brief shutdowns caused by exceptional demand, the combination of elevated costs and potential availability issues threatens to compound difficulties for motorists across the country.
- Unleaded fuel now 17p more expensive per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since tensions began
- Filling a family car costs approximately £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back on official allegations
The intensifying row over fuel pricing has exposed a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances they cannot influence. 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 unhelpful. The Petrol Retailers Association and large retailers like Asda have insisted that margins have actually compressed during the latest surge, leaving minimal space 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 announced it will strengthen oversight of the fuel sector, signalling that regulatory scrutiny will increase. Yet fuel retailers argue this increased scrutiny overlooks the core issue: they are reacting to genuine supply constraints and wholesale price fluctuations, not creating artificial scarcity for profit. Asda’s Allan Leighton pointed out that the state profits significantly 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, implying that criticism from Westminster may overlook the government’s own financial interests in higher fuel prices.
Asda’s defence and procurement difficulties
As the UK’s second-biggest fuel retailer, Asda has positioned itself at the centre of the profiteering controversy. Executive chairman Leighton has categorically rejected 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 shut down any petrol stations completely. The company anticipates the affected pumps to resume service following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements highlight a important difference between profit-seeking and supply management. When demand surges unexpectedly, as took place in the wake of the Middle East tensions, retailers may find it challenging to keep up stock levels despite making every effort. The Association of Petrol Retailers supported this narrative, admitting sporadic supply problems at “a handful of forecourts for one retailer” but maintaining that supply across the UK is operating as usual. The association recommended drivers that there is no reason to modify their regular buying patterns, implying that reports of shortages have been inflated or isolated.
Middle East instability driving bulk pricing
The marked increase in petrol and diesel prices has been directly linked to escalating tensions in the Middle East, in the wake of armed operations between the US, Israel and Iran approximately a month ago. These geopolitical developments have created significant uncertainty in worldwide petroleum markets, driving wholesale prices higher and compelling retailers to hand on rises to consumers at fuel stations. The RAC has recorded that regular fuel has climbed by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts caution that additional geopolitical disruption could force prices up still, notably if supply routes through essential bottlenecks become blocked.
The timing of these cost rises has turned out to be especially difficult for British motorists approaching the Easter holidays. Families planning road trips face considerably elevated petrol costs, with the expense of filling a typical family car now surpassing £82 for unleaded petrol—roughly £9.50 higher than just a month earlier. Diesel cars are impacted to an even greater extent, with a complete fill-up now running to over £97, representing a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre mark as an “unwelcome milestone,” underlining the cumulative impact on family finances during what ought to be a period 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 volatility and political tensions
Global oil markets stay highly responsive to Middle Eastern events, with crude prices mirroring investor worries about possible supply disruptions. The attacks on Iran have heightened uncertainty about regional stability, leading traders to demand risk premiums on petroleum contracts. Whilst current prices stay below the extraordinary peaks seen after Russia’s invasion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts suggest that any further escalation in hostilities could spark further price increases, particularly if major shipping routes or production facilities face disruption.
Public finances and consumer impact
As petrol prices keep rising steadily, the government has found itself in an awkward position. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the spike in fuel costs. Excise duty on fuel stays constant regardless of the wholesale cost, 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 contradiction, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own gains from elevated petrol costs.
The wider economic implications go further than individual household budgets to cover price increases across all economic sectors. Elevated petrol prices feed through supply networks, affecting delivery costs for goods and services. Small businesses dependent on high-fuel activities experience significant difficulty, with freight operators and courier services bearing substantial cost rises. Household purchasing power declines as people channel spending into fuel purchases rather than different expenditures, likely slowing economic growth. The RAC has counselled vehicle owners to schedule fuel purchases carefully and employ price-checking tools to identify the lowest-priced local fuel retailers, though such measures provide limited assistance against the overall cost escalation.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as shipping expenses rise throughout various sectors and industries
- Consumer non-essential spending declines as family finances focus on necessary fuel spending
What drivers should do at present
With petrol prices displaying no immediate prospect of falling, motorists are being urged to adopt a more strategic approach to refuelling. The RAC has stressed the significance of planning journeys carefully and utilising price-comparison applications to identify the cheapest forecourts in their surrounding neighbourhood. Whilst such steps deliver only limited savings, they can accumulate meaningfully over time. Drivers should also consider whether discretionary journeys can be postponed or combined to lower total fuel usage. For those dealing with the Easter period, arranging travel plans ahead of time and filling up at cheaper locations before setting out on extended journeys could aid in lessening the burden of elevated pump prices on holiday budgets.
- Use fuel price comparison apps to find the cheapest local forecourts before filling up
- Combine journeys where possible and postpone non-essential trips to lower fuel usage
- Fill up at cheaper locations before embarking on extended Easter break trips
- Map your journey with care to improve fuel economy and reduce total costs
