Petrol prices have breached the 150p-per-litre mark for the first time in almost two years, heightening the argument over whether fuel retailers are taking advantage of soaring oil costs for financial gain. The typical cost for unleaded petrol climbed above the important mark on Friday, whilst diesel surged past 177p, according to figures from the RAC. The sharp increases, which have pushed up by £10 to the price of topping up a typical family car in just a month, follow military tensions in the region that erupted a month ago when the US and Israel conducted strikes 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 battling limited supply chains.
The 150p ceiling surpassed
The milestone marks a important juncture for British motorists, who have observed fuel costs rise consistently since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre 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 unwanted milestone that will sting households already struggling with the cost-of-living crisis. The increases are remarkably 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 current prices stay below the record highs recorded following Russia’s attack on Ukraine in 2022, the rapid acceleration has reignited concerns about affordability and accessibility. Diesel has fared even worse, rising 35p per litre since the conflict began and now standing at 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 petrol stations reporting brief shutdowns due to unusually high demand, the mix of higher prices and potential availability issues threatens to worsen challenges for drivers throughout the nation.
- Unleaded fuel now 17p costlier per litre than pre-conflict levels
- Diesel costs have risen 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 challenge against official allegations
The escalating row over fuel pricing has exposed a widening divide between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances outside their remit. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers during 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 genuinely tightened during the latest surge, leaving little room for profiteering even if operators were disposed to act. This finger-pointing reflects the political sensitivity surrounding fuel costs, which materially influence household budgets and popular understanding of government competence.
The Competition and Markets Authority has stated it will intensify oversight of the petrol market, signalling that regulatory oversight will tighten. Yet retailers argue this heightened oversight overlooks the fundamental point: they are reacting to real supply limitations and wholesale price movements, not engineering false shortages for financial gain. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and VAT, potentially earning more from the price surge than fuel retailers. This remark has added an uncomfortable dimension to the discussion, suggesting that criticism from Westminster may overlook the state’s own financial interests in higher fuel prices.
Asda’s defence and supply pressures
As the UK’s second-biggest fuel retailer, Asda has positioned itself at the centre of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, 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 shut down any petrol stations completely. The company anticipates the affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements emphasise a critical difference between profiteering and supply management. When demand spikes dramatically, as has occurred after the regional tensions in the Middle East, retailers may find it challenging to maintain standard stock levels in spite of their efforts. The Petrol Retailers Association backed up this account, acknowledging isolated availability issues at “a handful of forecourts for one retailer” but insisting that supply across the UK is functioning smoothly. The body advised drivers that there is no need to alter their usual purchasing habits, suggesting that claims of stock problems have been exaggerated or confined to specific areas.
Middle East tensions increasing bulk pricing
The marked increase in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, in the wake of combat actions between the US, Israel and Iran about a month prior. These geopolitical developments have produced substantial volatility in worldwide petroleum markets, pushing wholesale costs upwards and compelling retailers to transfer costs to consumers at the pump. The RAC has recorded that unleaded petrol has climbed by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts warn that further regional instability could push prices higher still, especially should distribution channels through critical chokepoints become disrupted.
The scheduling of these cost rises has proven especially difficult for British drivers approaching the Easter holidays. Families organising driving holidays face considerably elevated fuel bills, with the cost of filling a typical family car now surpassing £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 full tank now running to over £97, representing a £19 rise. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the combined effect 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 |
Crude oil fluctuations plus geopolitical factors
Global oil sectors remain highly sensitive to Middle Eastern events, with crude prices mirroring investor concerns about possible supply disruptions. The attacks on Iran have increased uncertainty about regional stability, prompting traders to demand risk premiums on petroleum contracts. Whilst current prices remain below the extraordinary peaks seen after Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is worrying. Energy analysts suggest that any additional escalation in conflict could trigger additional price spikes, particularly if major shipping routes or production facilities face disruption.
Government revenue and impact on consumers
As petrol prices keep rising steadily, the government has been placed in an difficult situation. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel remains fixed 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 pointedly noted this inconsistency, suggesting that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own gains from elevated petrol costs.
The wider economic implications extend beyond domestic spending limits to include inflationary forces across all economic sectors. Increased fuel expenses feed through supply chains, affecting delivery costs for products and services. Smaller enterprises reliant on high-fuel activities experience significant difficulty, with haulage companies and courier services absorbing significant cost increases. Consumer purchasing capacity declines as families redirect money into fuel purchases rather than different expenditures, likely slowing economic expansion. The RAC has counselled vehicle owners to organise refuelling efficiently and utilise fuel-price apps to locate the cheapest local forecourts, though such measures 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 discretionary spending declines as family finances prioritise necessary fuel spending
What drivers ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being advised to implement a more planned strategy to refuelling. The RAC has emphasised the importance of mapping out trips methodically and using price-comparison tools to identify the cheapest forecourts in their surrounding neighbourhood. Whilst such measures offer only modest savings, they can build substantially over time. Drivers may also wish to evaluate whether discretionary journeys can be postponed or combined to minimise overall fuel expenditure. For those facing the Easter holidays, booking travel plans in advance and topping up at budget-friendly forecourts before undertaking longer drives could help mitigate the impact 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 unnecessary journeys to lower fuel usage
- Fill up at cheaper locations before setting out on extended Easter break trips
- Plan routes carefully to maximise fuel efficiency and minimise overall expenditure
