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 surging oil costs for profit. The average price for standard petrol exceeded the important mark on Friday, whilst diesel climbed above 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 geopolitical tensions in the Middle East that erupted a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of profiteering, instead pointing to ministers for unjustly blaming at forecourt operators battling constrained supply chains.
The 150p threshold broken
The milestone marks a important juncture for British motorists, who have observed fuel costs increase progressively since the regional tensions in the Middle East 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 unwelcome milestone that will sting households already dealing with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families start planning their Easter trips and summer breaks, when fuel demand typically reaches its highest levels.
Whilst the present prices stay below the peak levels recorded following Russia’s attack on Ukraine in 2022, the swift increase has reignited concerns about cost and availability. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s findings reveals that petrol has increased 17p per litre in the identical timeframe. With distribution networks already strained and some forecourts experiencing temporary pump closures due to unusually high demand, the mix of elevated costs and potential availability issues threatens to worsen challenges for motorists 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 stay below Ukraine invasion peaks but rising at concerning rate
Retailers push back against state claims
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 increasingly combative language, warning retailers against attempting to “rip off” customers amid the price surge. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the latest surge, leaving scant scope for profiteering even if operators were disposed to act. This mutual recrimination reflects the political importance surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The Competition and Markets Authority has announced it will intensify oversight of the petrol market, signalling that regulatory scrutiny will tighten. Yet retailers contend this increased scrutiny misses the fundamental point: they are reacting to genuine supply constraints and wholesale price movements, not engineering artificial scarcity for profit. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and value-added tax, potentially earning more from the price spike than retailers do. This remark has introduced an uncomfortable dimension to the debate, implying that government criticism may overlook the state’s own financial interests in higher fuel prices.
Asda’s defense and logistics difficulties
As the UK’s second-biggest fuel supplier, 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 substantially outstripping available supply. He acknowledged that a small number of pumps have temporarily gone out of service due to unusually high customer demand, but insisted that Asda has not closed any forecourts entirely. The company expects affected pumps to resume service following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s remarks emphasise a key distinction between profit-seeking and supply management. When demand increases sharply, as took place following the Middle East tensions, retailers can find it difficult to keep up inventory levels despite making every effort. The Association of Petrol Retailers corroborated this narrative, recognising isolated availability issues at “a handful of forecourts for one retailer” but insisting that supply across the UK is flowing normally. The association counselled drivers that there is no need to change their normal shopping behaviour, suggesting that accounts of supply issues are overstated or confined to specific areas.
Middle Eastern tensions pushing wholesale prices
The notable surge in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, following military strikes between the US, Israel and Iran approximately a month ago. These regional shifts have generated considerable instability in international energy markets, driving wholesale prices higher and obliging retailers to hand on rises to consumers at the pump. The RAC has recorded that regular fuel has risen by 17p per litre since the fighting commenced, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that additional geopolitical disruption could push prices higher still, especially should distribution channels through key passages become interrupted.
The timing of these cost rises has turned out to be especially difficult for British motorists approaching the Easter break. Families planning driving holidays encounter considerably elevated petrol costs, with the expense 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 full tank 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,” highlighting the combined effect on household budgets during what ought to be a period 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 remain highly responsive to Middle Eastern developments, with crude prices reflecting investor worries about potential disruptions to supply. The attacks on Iran have increased doubt about regional stability, prompting traders to require risk premiums on petroleum contracts. Whilst current prices stay 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 further escalation in hostilities could spark additional price spikes, particularly if major transport corridors or manufacturing plants experience 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 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 contradiction, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own windfall from higher fuel prices.
The more extensive economic effects extend beyond individual household budgets to cover inflationary forces across the entire economy. Increased fuel expenses pass through distribution networks, affecting delivery costs for commodities and services. Smaller enterprises dependent on fuel-intensive operations experience significant difficulty, with transport firms and logistics providers absorbing significant cost increases. Consumer spending power diminishes as families redirect money to fuel stations rather than other purchases, likely slowing economic expansion. The RAC has recommended vehicle owners to schedule fuel purchases carefully and utilise fuel-price apps to find the lowest-priced local fuel retailers, though such measures deliver modest help against the broader price surge.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures increase as transport costs rise throughout various sectors and industries
- Consumer discretionary spending declines as household budgets focus on essential fuel purchases
What drivers should do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has emphasised the importance of planning journeys carefully and using price-comparison tools to identify the cheapest forecourts in their local area. Whilst such steps deliver only limited savings, they can build substantially over time. Drivers ought to also think about whether non-essential journeys can be delayed or merged to lower total fuel usage. For those preparing for the Easter break, booking travel plans in advance and refuelling at lower-cost stations before embarking on longer trips could assist in reducing the effect of higher petrol rates on vacation finances.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before refuelling
- Merge trips where possible and postpone unnecessary journeys to lower fuel usage
- Fill up at cheaper locations before setting out on extended Easter break trips
- Plan routes carefully to improve fuel economy and minimise overall expenditure
