Petrol prices have breached the 150p-per-litre milestone for the first occasion in nearly two years, fuelling the debate over whether fuel retailers are exploiting rocketing oil costs for profit. The average price for standard 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 standard family vehicle in only a month, follow geopolitical tensions in the Middle East that broke out a month ago when the US and Israel carried out operations on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of profiteering, instead criticising ministers for unfairly “pointing the finger” at forecourt operators struggling with constrained supply chains.
The 150p barrier breached
The milestone marks a important juncture 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 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 affect households already dealing with the cost-of-living crisis. The increases are particularly 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 attack on Ukraine in 2022, the rapid acceleration has reignited concerns about cost and availability. Diesel has fared even 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 distribution networks already stretched and some forecourts reporting brief shutdowns due to exceptional demand, the combination of elevated costs and possible supply problems threatens to compound difficulties for motorists across the country.
- Unleaded petrol now 17p costlier per litre than levels before the conflict
- 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 remain below Ukraine invasion peaks but rising at concerning rate
Retailers push back against state claims
The escalating row over fuel pricing has highlighted a growing rift between the government and forecourt operators, who argue they are being unjustly blamed for circumstances beyond their control. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers throughout the price surge. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and major chains like Asda have insisted that margins have genuinely tightened during the recent spike, leaving scant scope 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 consumer views of government competence.
The Competition and Markets Authority has announced it will intensify monitoring of the fuel sector, signalling that regulatory oversight will increase. Yet retailers contend this heightened oversight overlooks the fundamental point: they are responding to genuine supply constraints and wholesale price movements, not engineering false shortages for profit. Asda’s Allan Leighton pointed out that the state profits significantly from fuel duty and VAT, potentially earning more from the price spike than fuel retailers. This observation has introduced an uncomfortable dimension to the discussion, implying that criticism from Westminster may overlook the state’s own economic stakes in higher fuel prices.
Asda’s defense and logistics challenges
As the UK’s second-biggest fuel retailer, Asda has positioned itself at the centre of the pricing row. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, stressing instead that fuel volumes have increased substantially, with demand far exceeding available supply. He conceded that a small number of pumps have temporarily gone out of service due to unusually high customer demand, but maintained that Asda has not closed any forecourts entirely. The company expects affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s remarks underscore a critical difference between profiteering and inventory control. When demand surges unexpectedly, as has happened after the regional tensions in the Middle East, retailers can struggle to keep up inventory levels despite making every effort. The Petrol Retailers Association backed up this claim, admitting isolated availability issues at “a small number of forecourts for one retailer” but asserting that supply across the UK is flowing normally. The body recommended drivers that there is no need to alter their usual buying patterns, suggesting that accounts of supply issues are overstated or confined to specific areas.
Middle East instability increasing wholesale prices
The marked increase in petrol and diesel prices has been closely connected to rising conflict in the Middle East, subsequent to armed operations between the US, Israel and Iran roughly a month earlier. These geopolitical developments have created significant uncertainty in worldwide petroleum markets, driving wholesale prices higher and obliging retailers to hand on rises to consumers on the forecourt. 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 ongoing tensions could force prices up still, notably if transport corridors through critical chokepoints become blocked.
The scheduling of these cost rises has proven especially difficult for British motorists heading into the Easter break. Families organising road trips encounter significantly higher petrol costs, with the expense of filling a typical family car now surpassing £82 for unleaded petrol—roughly £9.50 more than just a month before. Diesel cars are impacted to an even greater extent, with a complete fill-up now costing 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 cumulative impact on family finances during what ought to 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 |
Crude oil fluctuations plus geopolitical factors
Global oil markets stay highly sensitive to Middle Eastern events, with crude prices reflecting investor concerns about possible disruptions to supply. The attacks on Iran have heightened uncertainty about stability in the region, leading traders to demand premium rates on petroleum agreements. Whilst current prices stay below the exceptional highs seen after Russia’s invasion of Ukraine—when wholesale costs reached record highs—the trajectory is worrying. Energy analysts suggest that any additional escalation in hostilities could spark further price increases, especially if major transport corridors or production facilities experience disruption.
Public finances and consumer impact
As petrol prices keep rising steadily, the government has been placed in an awkward position. Whilst government officials have openly condemned fuel retailers for possible price gouging, 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 no matter if petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this inconsistency, suggesting that before accusing retailers of exploiting the crisis, the government should acknowledge its own gains from elevated petrol costs.
The wider financial consequences extend beyond personal family finances to cover inflation pressures across all economic sectors. Increased fuel expenses feed through supply networks, impacting transport expenses for goods and services. SMEs relying on fuel-intensive operations experience significant difficulty, with freight operators and courier services facing major expense increases. Household purchasing power declines as families redirect money into fuel purchases rather than different expenditures, potentially dampening GDP growth. The RAC has recommended vehicle owners to organise refuelling efficiently and employ price-checking tools to locate the most affordable nearby petrol stations, though these steps provide limited assistance against the overall cost escalation.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise throughout various sectors and industries
- Consumer non-essential spending declines as family finances focus on necessary fuel spending
What motorists ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being advised to adopt a more strategic approach to refuelling. The RAC has stressed the significance of planning journeys carefully and leveraging price-comparison platforms to find the lowest-priced fuel retailers in their local region. Whilst such steps deliver only limited savings, they can add up considerably over time. Drivers may also wish to evaluate whether discretionary journeys can be deferred or consolidated to minimise overall fuel expenditure. For those dealing with the Easter period, booking travel plans in advance and filling up at cheaper locations before undertaking longer drives could aid in lessening the burden of higher petrol rates on vacation finances.
- Use petrol price finder tools to locate the cheapest local forecourts before filling up
- Merge trips where feasible and defer non-essential trips to reduce consumption
- Fill up at more affordable stations before setting out on extended Easter break trips
- Plan routes carefully to maximise fuel efficiency and minimise overall expenditure
