Petrol prices have surpassed the 150p-per-litre threshold for the first time in nearly two years, fuelling the argument over whether fuel retailers are taking advantage of soaring oil costs for profit. The typical cost for standard petrol rose past the symbolic threshold on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The sharp increases, which have pushed up by £10 to the price of topping up a standard family vehicle in only a month, follow geopolitical tensions in the region that erupted a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has firmly rejected accusations of excessive profit-taking, instead blaming ministers for unfairly “pointing the finger” at forecourt operators battling restricted supply networks.
The 150p barrier breached
The milestone represents a significant moment for British motorists, who have watched 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 fuel—nearly £10 more than just four weeks earlier. The RAC has termed the breach of 150p as an unwanted milestone that will sting households already dealing with the cost-of-living crisis. The increases are especially badly timed, arriving just as families start planning their Easter trips and summer holidays, when demand for fuel typically reaches its highest levels.
Whilst the present prices remain below the peak levels recorded following Russia’s invasion of Ukraine in 2022, the swift increase has revived concerns about cost and availability. Diesel has struggled even more, rising 35p per litre since the conflict began and now standing at over 177p. The RAC’s analysis reveals that unleaded petrol has increased 17p per litre in the same period. With supply chains already stretched and some forecourts reporting temporary pump closures caused by unusually high demand, the combination of elevated costs and potential availability issues risks worsen challenges for motorists throughout the nation.
- Unleaded fuel now 17p more expensive per litre than pre-conflict levels
- Diesel prices have increased by 35p per litre since tensions began
- Filling a family car costs approximately £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers challenge on official allegations
The growing row over fuel pricing has revealed a growing rift 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 amid the cost escalation. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and leading operators like Asda have insisted that margins have genuinely tightened during the current increase, leaving little room for profiteering even if operators were inclined to do so. This blame-shifting reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and consumer views of government competence.
The CMA has announced it will intensify oversight of the fuel sector, indicating that regulatory scrutiny will tighten. Yet fuel retailers contend this heightened oversight misses the fundamental point: they are responding to genuine supply constraints and wholesale price movements, not creating artificial scarcity for profit. Asda’s Allan Leighton pointed out that the government itself benefits substantially from fuel duty and VAT, possibly gaining more from the price spike than retailers do. This remark has introduced an awkward element to the discussion, suggesting that government criticism may overlook the government’s own economic stakes in higher fuel prices.
Asda’s defence and supply pressures
As the UK’s second largest fuel retailer, Asda has positioned itself at the centre 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 surged significantly, with demand substantially outstripping available supply. He acknowledged that a small number of pumps have briefly stopped operating due to unusually high customer demand, but insisted that Asda has not closed any forecourts entirely. The company expects affected pumps to return to operation following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements highlight a key difference between profiteering 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 standard inventory levels despite their best efforts. The Association of Petrol Retailers corroborated this account, recognising isolated availability issues at “a small number of forecourts for one retailer” but insisting that overall UK supply is operating as usual. The body recommended drivers that there is no need to alter their usual shopping behaviour, suggesting that claims of stock problems are overstated or isolated.
Middle Eastern conflicts driving wholesale costs
The notable surge in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, subsequent to combat actions between the US, Israel and Iran roughly a month earlier. These political changes have generated considerable instability in international energy markets, forcing wholesale costs up and compelling retailers to transfer costs to consumers at the pump. The RAC has recorded that unleaded petrol has increased by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts warn that further regional instability could push prices higher still, notably if distribution channels through critical chokepoints become disrupted.
The scheduling of these price increases has proven particularly painful for British motorists approaching the Easter break. Families organising road trips face 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 full tank now costing over £97, constituting a £19 rise. The RAC’s Simon Williams described the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the cumulative impact 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 fluctuations plus political tensions
Global oil markets stay highly sensitive to Middle Eastern events, with crude prices mirroring investor worries about potential supply disruptions. The attacks on Iran have heightened uncertainty about stability in the region, leading traders to require premium rates on petroleum agreements. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s military incursion of Ukraine—when wholesale costs reached record highs—the trajectory is concerning. Energy analysts indicate that any additional escalation in hostilities could spark additional price spikes, especially if major transport corridors or production facilities experience disruption.
Public finances and consumer impact
As petrol prices continue their upward trajectory, the government has been placed in an awkward position. Whilst government officials have openly condemned 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 market price, meaning the government receives identical duty per litre no matter if petrol costs 120p or 150p. Asda’s chief executive Allan Leighton pointedly noted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own gains from elevated petrol costs.
The more extensive economic implications go further than individual household budgets to include price increases throughout the wider economy. Increased fuel expenses feed through distribution networks, affecting haulage expenses for commodities and services. SMEs dependent on fuel-intensive operations experience significant difficulty, with transport firms and courier services bearing substantial cost rises. Consumer purchasing capacity diminishes as families redirect money toward petrol pumps rather than different expenditures, possibly reducing economic expansion. The RAC has recommended drivers to plan refuelling strategically and utilise fuel-price apps to locate the lowest-priced local fuel retailers, though such measures offer only marginal relief against the broader price surge.
- Government collects fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures increase as shipping expenses 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 displaying no immediate prospect of falling, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has highlighted the value of planning journeys carefully and utilising price-comparison applications to locate the most affordable petrol stations in their local area. Whilst such measures offer only modest savings, they can add up considerably over time. Drivers may also wish to evaluate whether discretionary journeys can be deferred or consolidated to reduce overall fuel consumption. For those facing the Easter holidays, arranging travel plans ahead of time and filling up at cheaper locations before undertaking longer drives could help mitigate the impact of elevated pump prices on holiday spending.
- Use fuel price comparison apps to find the cheapest local forecourts before refuelling
- Combine journeys where possible and postpone non-essential trips to lower fuel usage
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Plan routes carefully to improve fuel economy and reduce total costs
