Petrol prices have exceeded the 150p-per-litre threshold for the first occasion in almost two years, fuelling the argument over whether fuel retailers are taking advantage of rocketing oil costs for profit. The average price for unleaded petrol rose past the symbolic threshold on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The notable jumps, which have pushed up by £10 to the cost of filling a standard family vehicle in just a month, follow regional conflict in the region that flared up a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has firmly rejected accusations of profiteering, instead pointing to ministers for wrongly accusing at petrol station owners struggling with restricted supply networks.
The 150p ceiling surpassed
The milestone marks a significant moment for British motorists, who have seen 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 four weeks earlier. The RAC has characterised the breach of 150p as an unwanted milestone that will impact families already dealing with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families commence planning their Easter trips and summer holidays, when fuel demand conventionally surges.
Whilst the current prices stay below the peak levels recorded following Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited worries regarding 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 findings reveals that unleaded petrol has risen 17p per litre in the same period. With supply chains already strained and some petrol stations experiencing temporary pump closures due to unusually high demand, the mix of higher prices and potential availability issues threatens to worsen challenges for drivers across the country.
- Unleaded fuel now 17p costlier per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since tensions began
- Filling up a family car costs roughly £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers challenge against 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 they cannot influence. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers amid the cost escalation. 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 truly narrowed during the latest surge, leaving scant scope for profiteering even if operators were willing to do so. This mutual recrimination reflects the public concern surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The CMA has announced it will intensify monitoring of the fuel sector, indicating that regulatory oversight will increase. Yet fuel retailers argue this increased scrutiny overlooks the fundamental point: they are responding to genuine supply constraints and wholesale price fluctuations, not engineering false shortages for financial gain. Asda’s Allan Leighton highlighted that the state benefits substantially from fuel duty and VAT, potentially earning more from the price spike than retailers do. This remark has introduced an awkward element to the discussion, implying that government criticism may disregard the state’s own financial interests in elevated fuel costs.
Asda’s defence and supply difficulties
As the UK’s second-biggest fuel retailer, Asda has found itself at the heart of the pricing row. 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 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 maintained that Asda has not shut down any petrol stations completely. The company anticipates the affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s observations highlight a important difference between profit-seeking and supply management. When demand surges unexpectedly, as has happened in the wake of the regional tensions in the Middle East, retailers can find it difficult to keep up inventory levels despite making every effort. The Association of Petrol Retailers corroborated this narrative, admitting isolated availability issues at “a small number of forecourts for one retailer” but asserting that overall UK supply is functioning smoothly. The body counselled drivers that there is no requirement to alter their usual shopping behaviour, indicating that claims of stock problems are overstated or isolated.
Middle East conflicts pushing wholesale prices
The notable surge in petrol and diesel prices has been closely connected to mounting instability in the Middle East, subsequent to combat actions between the US, Israel and Iran about a month prior. These regional shifts have produced substantial volatility in worldwide petroleum markets, forcing wholesale costs up and forcing retailers to hand on rises to consumers at fuel stations. The RAC has noted that unleaded petrol has climbed by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that additional geopolitical disruption could force prices up still, especially should distribution channels through key passages become disrupted.
The scheduling of these price increases has proven particularly painful for British motorists approaching the Easter holidays. Families organising driving holidays encounter significantly higher fuel bills, with the cost of filling a typical family car now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel cars are affected to an even greater extent, with a complete fill-up now running to over £97, constituting a £19 increase. The RAC’s Simon Williams described the breaching of the 150p-per-litre mark as an “unwelcome milestone,” underlining the cumulative impact 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 fluctuations plus political tensions
Global oil sectors remain highly responsive to Middle Eastern developments, with crude prices mirroring investor worries about potential supply disruptions. The attacks on Iran have increased doubt about stability in the region, prompting traders to require premium rates on petroleum contracts. Whilst current prices remain below the exceptional highs seen after Russia’s military incursion of Ukraine—when wholesale costs reached record highs—the trajectory is concerning. Energy analysts suggest that any additional escalation in conflict could spark further price increases, particularly if major transport corridors or manufacturing plants experience disruption.
Government revenue and impact on consumers
As petrol prices keep rising steadily, the government has been placed in an awkward position. Whilst ministers have publicly criticised fuel retailers for potential profiteering, 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 collects the same tax per litre no matter if petrol costs 120p or 150p. Asda’s chief executive Allan Leighton pointedly noted this contradiction, suggesting that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own windfall from higher fuel prices.
The broader financial consequences extend beyond domestic spending limits to encompass inflationary forces throughout the wider economy. Increased fuel expenses pass through distribution networks, affecting haulage expenses for products and services. Smaller enterprises relying on fuel-heavy processes encounter considerable challenges, with haulage companies and delivery services facing major expense increases. Household purchasing power diminishes as people channel spending to fuel stations rather than alternative spending, possibly reducing economic growth. The RAC has advised motorists to organise refuelling efficiently and use price-comparison applications to identify the lowest-priced local fuel retailers, though such measures deliver modest help against the overall cost escalation.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as transport costs rise across all sectors and industries
- Consumer discretionary spending falls as household budgets focus on essential fuel purchases
What motorists ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being urged to take a more calculated approach to refuelling. The RAC has highlighted the value of mapping out trips methodically and leveraging price-comparison platforms to locate the most affordable petrol stations in their local area. Whilst such steps deliver only limited savings, they can accumulate meaningfully over time. Drivers may also wish to evaluate whether non-essential journeys can be deferred or consolidated to lower total fuel usage. For those preparing for the Easter break, reserving travel arrangements early and filling up at cheaper locations before setting out on extended journeys could assist in reducing the effect of increased fuel costs on vacation finances.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before filling up
- Merge trips where feasible and defer unnecessary journeys to reduce consumption
- Fill up at more affordable stations before setting out on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and reduce total costs
