Petrol prices have surpassed the 150p-per-litre threshold for the first time in almost two years, heightening the debate over whether fuel retailers are capitalising on surging oil costs for profit. The average price for standard petrol exceeded the symbolic threshold on Friday, whilst diesel surged past 177p, according to figures from the RAC. The notable jumps, which have added nearly £10 to the price of topping up a standard family vehicle in only a month, follow military tensions in the Middle East that flared up a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of profiteering, instead pointing to ministers for wrongly accusing at petrol station owners battling constrained supply chains.
The 150p barrier breached
The milestone constitutes a significant moment for British motorists, who have observed fuel costs increase progressively since the Middle East tensions began. For a typical family car requiring a 55-litre tank, drivers are now encountering costs exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has termed the breach of 150p as an unwanted milestone that will affect households already dealing with the cost-of-living crisis. The increases are especially badly timed, arriving just as families begin planning their Easter trips and summer holidays, when fuel demand conventionally surges.
Whilst the current prices stay below the peak levels witnessed following Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived worries regarding cost and availability. Diesel has performed considerably worse, climbing 35p per litre since the conflict began and now reaching over 177p. The RAC’s findings shows that unleaded petrol has increased 17p per litre in the same period. With supply chains already strained and some forecourts experiencing temporary pump closures due to unusually high demand, the mix of elevated costs and potential availability issues risks compound difficulties for motorists throughout the nation.
- Unleaded fuel now 17p costlier per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since the tensions started
- 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 on government accusations
The growing 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 progressively confrontational language, warning retailers against attempting to “rip off” customers during the price surge. 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 actually compressed during the recent spike, leaving little room for profiteering even if operators were willing to do so. This blame-shifting reflects the public concern surrounding fuel costs, which significantly affect household budgets and popular understanding of government competence.
The CMA has stated it will strengthen monitoring of the fuel sector, indicating that regulatory scrutiny will increase. Yet fuel retailers argue this increased scrutiny overlooks the fundamental point: they are reacting to real supply limitations and wholesale price movements, not creating artificial scarcity for financial gain. Asda’s Allan Leighton pointed out that the government itself benefits substantially from fuel duty and VAT, potentially earning more from the price surge than retailers do. This observation has added an uncomfortable dimension to the debate, suggesting that government criticism may disregard the government’s own financial interests in higher fuel prices.
Asda’s defense and logistics pressures
As the UK’s second-biggest fuel supplier, Asda has found itself at the centre of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is taking advantage of the situation, stressing instead that fuel volumes have surged significantly, with demand substantially outstripping available supply. He acknowledged that a small number of pumps have temporarily gone out of service due to exceptional customer demand, but maintained that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to resume service following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations highlight a important distinction between profiteering and inventory control. When demand increases sharply, as took place after the Middle East tensions, retailers may find it challenging to maintain standard stock levels despite making every effort. The Petrol Retailers Association corroborated this account, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but insisting that the UK’s overall supply is flowing normally. The body counselled drivers that there is no need to modify their regular shopping behaviour, implying that reports of shortages have been inflated or isolated.
Middle Eastern tensions increasing wholesale prices
The marked increase in petrol and diesel prices has been closely connected to escalating tensions in the Middle East, subsequent to armed operations between the US, Israel and Iran about a month prior. These regional shifts have produced substantial volatility in global oil markets, forcing wholesale costs up and compelling retailers to transfer costs to consumers at the pump. The RAC has recorded that regular fuel has increased by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that further regional instability could push prices higher still, notably if transport corridors through essential bottlenecks become disrupted.
The scheduling of these price increases has proven particularly painful for British drivers heading into the Easter break. Families planning road trips encounter considerably elevated fuel bills, with the expense 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 impacted even more severely, with a full tank now costing over £97, constituting a £19 rise. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre mark 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 |
Oil market volatility and political tensions
Global oil markets remain highly sensitive to Middle Eastern developments, with crude prices mirroring investor concerns about possible supply disruptions. The attacks on Iran have heightened 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 record highs—the trajectory is worrying. Energy analysts indicate that any further escalation in conflict could trigger further price increases, especially if major shipping routes or production facilities experience disruption.
Government revenue and consumer impact
As petrol prices continue their upward trajectory, the government has found itself in an difficult situation. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has quietly benefited substantially from the spike in fuel costs. 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 broader financial consequences go further than personal family finances to cover inflation pressures throughout the wider economy. Higher fuel costs feed through supply chains, influencing transport expenses for products and services. Small businesses relying on fuel-intensive operations encounter considerable challenges, with haulage companies and courier services bearing substantial cost rises. Consumer spending power falls as families redirect money to fuel stations rather than other purchases, possibly reducing GDP growth. The RAC has advised drivers to plan refuelling strategically and employ price-checking tools to identify the most affordable nearby petrol stations, though these steps deliver modest help against the overall cost escalation.
- Government collects fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures intensify as shipping expenses rise across all sectors and industries
- Consumer non-essential spending falls as family finances prioritise necessary fuel spending
What drivers should do now
With petrol prices displaying no immediate prospect of falling, motorists are being encouraged to adopt a more strategic approach to refuelling. The RAC has highlighted the value of carefully planning journeys and using price-comparison tools to find the lowest-priced fuel retailers in their surrounding neighbourhood. Whilst such steps deliver only limited savings, they can add up considerably over time. Drivers ought to also think about whether discretionary journeys can be deferred or consolidated to reduce overall fuel consumption. For those dealing with the Easter period, reserving travel arrangements early and filling up at cheaper locations before undertaking longer drives could help mitigate the impact of increased fuel costs on holiday budgets.
- Use fuel price comparison apps to find the most affordable nearby petrol stations 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 longer Easter holiday journeys
- Map your journey with care to improve fuel economy and reduce total costs
