Petrol prices have breached the 150p-per-litre mark for the first occasion in nearly two years, heightening the discussion over whether petrol stations are exploiting rocketing oil costs for profit. The average price for unleaded petrol exceeded the symbolic threshold on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The steep rises, which have added nearly £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 executive chairman Allan Leighton has firmly rejected accusations of excessive profit-taking, instead criticising ministers for unfairly “pointing the finger” at forecourt operators facing limited supply chains.
The 150p ceiling surpassed
The milestone represents 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 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 described the breach of 150p as an unwelcome milestone that will impact families already grappling with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families start planning their Easter getaways and summer breaks, when fuel demand conventionally surges.
Whilst the present prices remain below the peak levels witnessed following Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited concerns about cost and availability. Diesel has fared even worse, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s analysis shows that petrol has increased 17p per litre in the identical timeframe. With supply chains already stretched and some forecourts experiencing brief shutdowns due to exceptional demand, the combination of elevated costs and possible supply problems threatens to worsen challenges 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 tensions began
- Filling up a family car costs approximately £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back on government accusations
The intensifying row over fuel pricing has highlighted a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances they cannot influence. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers throughout the pricing spike. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the recent spike, leaving scant scope for profiteering even if operators were willing to do so. This blame-shifting reflects the political sensitivity surrounding fuel costs, which materially influence household budgets and popular understanding of government competence.
The CMA has stated it will intensify monitoring of the fuel sector, signalling that regulatory oversight will tighten. Yet fuel retailers contend this increased scrutiny misses the core issue: they are reacting to real supply limitations and wholesale price movements, not creating false shortages for profit. Asda’s Allan Leighton pointed out that the government itself benefits substantially from fuel duty and value-added tax, possibly gaining more from the price surge than retailers do. This remark has added an uncomfortable dimension to the debate, suggesting that criticism from Westminster may disregard the government’s own financial interests in higher fuel prices.
Asda’s defence and supply difficulties
As the UK’s second largest fuel supplier, Asda has positioned itself at the heart of the pricing row. 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 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 anticipates the affected pumps to resume service following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks underscore a important difference between profiteering and supply management. When demand surges unexpectedly, as has occurred in the wake of the Middle East tensions, retailers can find it difficult to keep up inventory levels in spite of their efforts. The Association of Petrol Retailers backed up this claim, admitting isolated availability issues at “a handful of forecourts for one retailer” but insisting that the UK’s overall supply is operating as usual. The association counselled drivers that there is no reason to modify their regular buying patterns, indicating that reports of shortages have been inflated or isolated.
Middle Eastern instability driving wholesale costs
The sharp rise in petrol and diesel prices has been closely connected to mounting instability in the Middle East, following military strikes between the US, Israel and Iran roughly a month earlier. These regional shifts have produced substantial volatility in worldwide petroleum markets, forcing wholesale costs up and compelling retailers to hand on rises to consumers on the forecourt. The RAC has noted that unleaded 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 drive prices upward still, notably if transport corridors through essential bottlenecks become blocked.
The timing of these cost rises has turned out to be especially difficult for British drivers heading into the Easter holidays. Families planning road trips encounter significantly higher petrol costs, with the cost of topping up a standard family vehicle now surpassing £82 for standard petrol—roughly £9.50 more than just a month before. Diesel-powered vehicles are impacted even more severely, with a complete fill-up now running to over £97, representing a £19 rise. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the cumulative impact on household budgets 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 volatility and political tensions
Global oil sectors stay highly sensitive to Middle Eastern developments, with crude prices reflecting investor worries about possible supply disruptions. The attacks on Iran have heightened uncertainty about regional stability, leading traders to require risk premiums on petroleum agreements. Whilst current prices remain below the extraordinary peaks witnessed following Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is concerning. Energy analysts indicate that any further escalation in hostilities could spark additional price spikes, particularly if major transport corridors or manufacturing plants experience disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, 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 remains fixed regardless of the wholesale cost, meaning the government collects the same tax per litre regardless of whether 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 ought to recognise its own windfall from higher fuel prices.
The more extensive economic implications transcend domestic spending limits to include price increases across all economic sectors. Higher fuel costs feed through distribution networks, impacting transport expenses for products and services. Smaller enterprises relying on high-fuel activities encounter considerable challenges, with transport firms and delivery services bearing substantial cost rises. Household purchasing power declines as people channel spending toward petrol pumps rather than other purchases, possibly reducing GDP growth. The RAC has advised motorists to plan refuelling strategically and use price-comparison applications to find the cheapest local forecourts, though such measures provide limited assistance against the wider price increase.
- Government collects set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures intensify as transport costs rise across all sectors and industries
- Consumer non-essential spending declines as household budgets prioritise necessary fuel spending
What drivers ought to do at present
With petrol prices displaying no immediate prospect of falling, motorists are being advised to implement a more planned strategy to refuelling. The RAC has highlighted the value of planning journeys carefully and utilising price-comparison applications to locate the most affordable petrol stations in their local area. 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 deferred or consolidated to reduce overall fuel consumption. For those facing the Easter holidays, reserving travel arrangements early and topping up at budget-friendly forecourts before embarking on longer trips could aid in lessening the burden of higher petrol rates on holiday budgets.
- Use petrol price finder tools to find the cheapest local forecourts before filling up
- Combine journeys where possible and defer non-essential trips to reduce consumption
- 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
