Petrol prices have breached the 150p-per-litre threshold for the first time in nearly two years, intensifying the argument over whether fuel retailers are taking advantage of soaring oil costs for profit. The typical cost for standard petrol exceeded the symbolic threshold on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The notable jumps, which have increased by around £10 to the cost of filling a typical family car in just a month, follow regional conflict in the Middle East that erupted a month ago when the US and Israel conducted strikes on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of excessive profit-taking, instead blaming ministers for unfairly “pointing the finger” at forecourt operators battling constrained supply chains.
The 150p ceiling surpassed
The milestone marks a important juncture for British motorists, who have seen fuel costs climb steadily since the Middle East tensions began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a full tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has characterised the breach of 150p as an unwanted milestone that will sting households already struggling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families commence planning their Easter getaways and summer breaks, when fuel demand typically reaches its highest levels.
Whilst the current prices remain below the record highs witnessed following Russia’s invasion of Ukraine in 2022, the swift increase has revived concerns about affordability and accessibility. Diesel has struggled even more, climbing 35p per litre since the conflict began and now standing at over 177p. The RAC’s analysis shows that unleaded petrol has increased 17p per litre in the identical timeframe. With supply chains already strained and some forecourts experiencing temporary pump closures due to exceptional demand, the mix of elevated costs and potential availability issues risks compound difficulties for motorists throughout the nation.
- 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 up a family car costs approximately £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retailers push back on government accusations
The escalating row over fuel pricing has highlighted a deepening split between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances beyond their control. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers throughout the pricing spike. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and large retailers like Asda have insisted that margins have truly narrowed during the current increase, leaving minimal space for profiteering even if operators were disposed to act. This blame-shifting reflects the public concern surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The CMA has stated it will strengthen monitoring of the petrol market, indicating that regulatory oversight will tighten. Yet retailers argue this increased scrutiny overlooks the core issue: they are reacting to real supply limitations and wholesale price fluctuations, not engineering false shortages for financial gain. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and VAT, possibly gaining more from the price surge than retailers do. This remark has introduced an awkward element to the discussion, suggesting that government criticism may disregard the state’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 taking advantage of the situation, stressing instead that fuel volumes have increased substantially, with demand far exceeding 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 closed any forecourts entirely. The company expects affected pumps to resume service following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations highlight a important separation between profiteering and inventory control. When demand surges unexpectedly, as has occurred following the Middle East tensions, retailers can struggle to keep up stock levels despite their best efforts. The Petrol Retailers Association backed up this claim, recognising sporadic supply problems at “a small number of forecourts for one retailer” but maintaining that the UK’s overall supply is flowing normally. The association counselled drivers that there is no need to change their normal buying patterns, indicating that claims of stock problems have been inflated or localised.
Middle East conflicts driving wholesale prices
The sharp rise in petrol and diesel prices has been closely connected to rising conflict in the Middle East, in the wake of armed operations between the US, Israel and Iran roughly a month earlier. These geopolitical developments have produced substantial volatility in worldwide petroleum markets, driving wholesale prices higher and obliging retailers to pass increases through to consumers at the pump. The RAC has recorded that standard petrol has increased by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts caution that further regional instability could force prices up still, particularly if distribution channels through critical chokepoints become interrupted.
The scheduling of these price increases has proven particularly painful for British drivers approaching the Easter holidays. Families planning road trips encounter significantly higher fuel bills, with the cost of topping up a standard family vehicle now surpassing £82 for unleaded petrol—roughly £9.50 more than just a month earlier. Diesel cars are impacted even more severely, with a full tank now running to over £97, representing a £19 increase. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the cumulative impact on family finances during what should 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 |
Crude oil fluctuations plus political tensions
Global oil sectors stay highly responsive to Middle Eastern developments, with crude prices reflecting investor concerns about potential disruptions to supply. The attacks on Iran have heightened doubt about regional stability, leading traders to demand risk premiums on petroleum contracts. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is concerning. 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 impact on consumers
As petrol prices continue their upward trajectory, 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 stays constant regardless of the wholesale cost, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this contradiction, suggesting that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own gains from elevated petrol costs.
The more extensive financial consequences go further than personal family finances to encompass inflation pressures throughout the wider economy. Increased fuel expenses flow through supply networks, affecting transport expenses for goods and services. Small businesses reliant on fuel-intensive operations encounter considerable challenges, with transport firms and courier services facing major expense increases. Household purchasing power falls as people channel spending to fuel stations rather than alternative spending, likely slowing economic growth. The RAC has advised drivers to organise refuelling efficiently and use price-comparison applications to locate the lowest-priced local fuel retailers, though these approaches provide limited assistance against the broader price surge.
- Government collects fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as transport costs rise across all sectors and industries
- Consumer discretionary spending falls as family finances prioritise essential fuel purchases
What motorists ought to do at present
With petrol prices displaying no immediate prospect of falling, motorists are being urged to take a more calculated approach to refuelling. The RAC has stressed the significance of planning journeys carefully and utilising price-comparison applications to identify the cheapest forecourts in their surrounding neighbourhood. Whilst such steps deliver only limited savings, they can accumulate meaningfully 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 refuelling at lower-cost stations before undertaking longer drives could help mitigate the impact of elevated pump prices on vacation finances.
- 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
- Map your journey with care to improve fuel economy and minimise overall expenditure
