Petrol prices have surpassed the 150p-per-litre threshold for the first occasion in almost two years, fuelling the discussion over whether petrol stations are taking advantage of soaring oil costs for financial gain. The average price for unleaded petrol climbed above the important mark on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The sharp increases, which have increased by around £10 to the price of topping up a standard family vehicle in only a month, follow regional conflict 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 strongly denied accusations of excessive profit-taking, instead pointing to ministers for unfairly “pointing the finger” at forecourt operators struggling with limited supply chains.
The 150p level exceeded
The milestone represents 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 tank, drivers are now facing bills 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 unwanted milestone that will impact families already struggling with the rising cost of living. The increases are especially badly timed, arriving just as families commence planning their Easter trips and summer breaks, when fuel demand traditionally peaks.
Whilst the present prices stay below the peak levels recorded following Russia’s invasion of Ukraine in 2022, the swift increase has revived worries regarding affordability and accessibility. Diesel has performed considerably worse, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s analysis shows that petrol has risen 17p per litre in the same period. With distribution networks already strained and some petrol stations reporting temporary pump closures caused by exceptional demand, the combination of higher prices and potential availability issues 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 the tensions started
- Filling a family car costs roughly £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back on official allegations
The escalating row over fuel pricing has revealed a growing rift between the government and forecourt operators, who argue they are being unjustly blamed for circumstances they cannot influence. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid the pricing spike. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and counterproductive. 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 willing to do so. This blame-shifting reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The Competition and Markets Authority has stated it will intensify oversight of the fuel sector, indicating that regulatory scrutiny will increase. Yet retailers argue this heightened oversight overlooks the core issue: they are reacting to genuine supply constraints and wholesale price movements, not creating false shortages for financial gain. Asda’s Allan Leighton highlighted that the government itself benefits substantially from fuel duty and VAT, possibly gaining more from the price surge than retailers do. This remark has added an awkward element to the discussion, suggesting that criticism from Westminster may disregard the government’s own financial interests in higher fuel prices.
Asda’s defence and procurement difficulties
As the UK’s second largest fuel supplier, Asda has positioned itself at the centre of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have surged significantly, with demand far exceeding available supply. He acknowledged that a small number of pumps have briefly stopped operating due to unusually high customer demand, but maintained that Asda has not shut down any petrol stations completely. The company expects affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements emphasise a key separation between profit-seeking and supply management. When demand increases sharply, as has occurred after the regional tensions in the Middle East, retailers may find it challenging to maintain normal stock levels despite their best efforts. The Association of Petrol Retailers backed up this account, acknowledging isolated availability issues at “a handful of forecourts for one retailer” but asserting that the UK’s overall supply is operating as usual. The body counselled drivers that there is no need to change their normal purchasing habits, implying that reports of shortages have been inflated or localised.
Middle Eastern conflicts pushing wholesale prices
The notable surge in petrol and diesel prices has been directly linked to escalating tensions in the Middle East, in the wake of armed operations between the US, Israel and Iran approximately a month ago. These regional shifts have produced substantial volatility in international energy markets, pushing wholesale costs upwards and forcing retailers to transfer costs to consumers at the pump. The RAC has documented that standard petrol has increased by 17p per litre since the fighting commenced, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that ongoing tensions could push prices higher still, especially should supply routes through key passages become blocked.
The timing of these cost rises has proven particularly painful for British drivers approaching the Easter break. Families planning road trips encounter significantly higher petrol costs, with the cost 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 full tank now running to over £97, representing 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 family finances during what ought to be a period 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 |
Oil market volatility and political tensions
Global oil sectors remain highly sensitive to Middle Eastern developments, with crude prices mirroring investor concerns about potential supply disruptions. The attacks on Iran have heightened doubt about regional stability, leading traders to demand premium rates on petroleum agreements. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts suggest that any further escalation in hostilities could trigger further price increases, especially if major transport corridors or production facilities experience disruption.
Public finances and impact on consumers
As petrol prices keep rising steadily, the government has found itself in an awkward position. Whilst government officials have openly condemned fuel retailers for potential profiteering, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel remains fixed regardless of the wholesale cost, meaning the government receives identical duty per litre no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this inconsistency, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own windfall from higher fuel prices.
The wider economic effects transcend individual household budgets to include inflationary forces across the entire economy. Increased fuel expenses pass through supply chains, affecting transport expenses for commodities and services. Smaller enterprises reliant on fuel-heavy processes experience significant difficulty, with transport firms and logistics providers facing major expense increases. Consumer purchasing capacity diminishes as families redirect money toward petrol pumps rather than different expenditures, likely slowing economic growth. The RAC has advised motorists to organise refuelling efficiently and utilise fuel-price apps to identify the lowest-priced local fuel retailers, though such measures deliver modest help against the overall cost escalation.
- Government receives fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as shipping expenses rise across all sectors and industries
- Consumer discretionary spending falls as household budgets focus on necessary fuel spending
What drivers ought to do at present
With petrol prices showing no immediate signs of retreating, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has emphasised the importance of carefully planning journeys and leveraging price-comparison platforms to identify the cheapest forecourts in their local area. Whilst such steps deliver only limited savings, they can add up considerably over time. Drivers may also wish to evaluate whether unnecessary trips can be deferred or consolidated to reduce overall fuel consumption. For those preparing for the Easter break, reserving travel arrangements early and topping up at budget-friendly forecourts before embarking on longer trips could aid in lessening the burden of elevated pump prices on holiday budgets.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before refuelling
- Combine journeys where possible and postpone unnecessary journeys to reduce consumption
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Plan routes carefully to maximise fuel efficiency and reduce total costs
