Petrol prices have surpassed the 150p-per-litre milestone for the first occasion in nearly two years, intensifying the argument over whether fuel retailers are capitalising on rocketing oil costs for financial gain. The average price for standard petrol climbed above the symbolic threshold on Friday, whilst diesel surged past 177p, according to figures from the RAC. The steep rises, which have pushed up by £10 to the price of topping up a typical family car in only a month, follow military tensions in the region that broke out a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has firmly rejected accusations of profiteering, instead pointing to ministers for unfairly “pointing the finger” at forecourt operators facing restricted supply networks.
The 150p ceiling surpassed
The milestone constitutes a significant moment for British motorists, who have watched fuel costs rise consistently since the Middle East tensions began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now encountering costs exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has described the breach of 150p as an unwelcome milestone that will impact families already grappling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families commence planning their Easter getaways and summer holidays, when demand for fuel typically reaches its highest levels.
Whilst the present prices stay below the record highs recorded after Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived worries regarding cost and availability. Diesel has fared even worse, rising 35p per litre since the conflict began and now standing at over 177p. The RAC’s findings reveals that petrol has risen 17p per litre in the identical timeframe. With distribution networks already stretched and some petrol stations experiencing brief shutdowns due to unusually high demand, the mix of higher prices and possible supply problems threatens to compound difficulties for drivers throughout the nation.
- Unleaded petrol 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 remain below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back on state claims
The intensifying row over fuel pricing has highlighted a growing rift between the government and forecourt operators, who argue they are being wrongly targeted for circumstances they cannot influence. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers during the price surge. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and large retailers like Asda have insisted that margins have genuinely tightened during the latest surge, leaving little room for profiteering even if operators were disposed to act. This mutual recrimination reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and consumer views of government competence.
The Competition and Markets Authority has announced it will strengthen oversight of the fuel sector, signalling that regulatory oversight will increase. Yet fuel retailers argue this increased scrutiny overlooks the core issue: they are responding to real supply limitations and wholesale price fluctuations, not engineering false shortages 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 spike than retailers do. This observation has introduced an uncomfortable dimension to the debate, implying that criticism from Westminster may disregard the state’s own financial interests in higher fuel prices.
Asda’s defence and supply difficulties
As the UK’s second-biggest fuel retailer, Asda has found 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 conceded that a small number of pumps have briefly stopped operating due to unusually high customer demand, but maintained that Asda has not closed any forecourts entirely. The company expects affected pumps to resume service following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations emphasise a key difference between profit-seeking and inventory control. When demand spikes dramatically, as took place after the Middle East tensions, retailers can find it difficult to maintain standard inventory levels despite their best efforts. The Petrol Retailers Association corroborated this account, admitting sporadic supply problems at “a handful of forecourts for one retailer” but asserting that the UK’s overall supply is functioning smoothly. The association advised drivers that there is no requirement to modify their regular buying patterns, implying that accounts of supply issues have been exaggerated or isolated.
Middle East conflicts pushing wholesale costs
The sharp rise in petrol and diesel prices has been directly linked to escalating tensions in the Middle East, following armed operations between the US, Israel and Iran about a month prior. These regional shifts have created significant uncertainty in international energy markets, forcing wholesale costs up and forcing retailers to transfer costs to consumers at fuel stations. The RAC has noted that standard petrol has risen by 17p per litre since the fighting commenced, whilst diesel has risen even more sharply by 35p per litre. Analysts alert that ongoing tensions could drive prices upward still, notably 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 holidays. Families planning driving holidays face significantly higher petrol costs, with the expense of filling a typical family car now exceeding £82 for unleaded petrol—roughly £9.50 more than just a month earlier. Diesel-powered vehicles are affected even more severely, with a full tank now costing over £97, representing a £19 increase. The RAC’s Simon Williams described the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting 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 remain highly sensitive to Middle Eastern developments, with crude prices mirroring investor concerns about possible supply disruptions. The attacks on Iran have increased uncertainty about stability in the region, prompting traders to demand risk premiums on petroleum agreements. Whilst current prices remain below the exceptional highs witnessed following Russia’s military incursion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts indicate that any additional escalation in conflict could trigger further price increases, especially if major transport corridors or production facilities face disruption.
Public finances and consumer impact
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 surge in pump prices. Excise duty on fuel stays constant 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 contradiction, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own gains from elevated petrol costs.
The more extensive economic implications extend beyond individual household budgets to cover price increases across the entire economy. Increased fuel expenses pass through distribution networks, influencing transport expenses for products and services. Smaller enterprises dependent on fuel-intensive operations face particular hardship, with haulage companies and logistics providers bearing substantial cost rises. Household purchasing power diminishes as households allocate funds to fuel stations rather than other purchases, possibly reducing GDP growth. The RAC has advised drivers to organise refuelling efficiently and utilise fuel-price apps to locate the lowest-priced local fuel retailers, though these approaches deliver modest help against the overall cost escalation.
- Government receives fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise across all sectors and industries
- Consumer non-essential spending declines as family finances focus on essential fuel purchases
What drivers should do now
With petrol prices displaying no immediate prospect of falling, motorists are being urged to implement a more planned strategy to refuelling. The RAC has emphasised the importance of mapping out trips methodically and utilising price-comparison applications to identify the cheapest forecourts in their local area. Whilst such steps deliver only limited savings, they can add up considerably over time. Drivers should also consider whether non-essential journeys can be postponed or combined to reduce overall fuel consumption. For those dealing with the Easter period, arranging travel plans ahead of time and filling up at cheaper locations before undertaking longer drives could aid in lessening the burden of increased fuel costs on holiday spending.
- Use petrol price finder tools to find the cheapest local forecourts before refuelling
- Merge trips where feasible and postpone non-essential trips to reduce consumption
- Fill up at more affordable stations before setting out on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and minimise overall expenditure
