Petrol prices have exceeded the 150p-per-litre milestone for the first occasion in almost two years, intensifying the discussion over whether fuel retailers are exploiting soaring oil costs for financial gain. The average price for unleaded petrol exceeded the symbolic threshold on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The sharp increases, which have added nearly £10 to the cost of filling a standard family vehicle in just a month, follow geopolitical tensions in the Middle East that erupted a month ago when the US and Israel conducted strikes on Iran. Asda’s executive chairman Allan Leighton has firmly rejected accusations of excessive profit-taking, instead pointing to ministers for unfairly “pointing the finger” at petrol station owners struggling with constrained supply chains.
The 150p threshold broken
The milestone marks a significant moment for British motorists, who have watched fuel costs rise consistently since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre tank, drivers are now dealing with expenses exceeding £82 for a full tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwanted milestone that will affect households already struggling with the rising cost of living. The increases are particularly poorly timed, arriving just as families begin planning their Easter getaways and summer holidays, when demand for fuel typically reaches its highest levels.
Whilst the current prices stay below the peak levels recorded following Russia’s attack on Ukraine in 2022, the swift increase has reignited worries regarding affordability and accessibility. Diesel has performed considerably worse, climbing 35p per litre since the conflict began and now standing at over 177p. The RAC’s findings reveals that petrol has increased 17p per litre in the same period. With distribution networks already stretched and some forecourts experiencing temporary pump closures caused by exceptional demand, the mix of elevated costs and possible supply problems threatens to worsen challenges for motorists throughout the nation.
- Unleaded fuel now 17p costlier 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 a month earlier
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back on state claims
The growing row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being wrongly targeted for circumstances they cannot influence. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers throughout the cost escalation. However, fuel retailers have hit back, 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 recent spike, leaving minimal space for profiteering even if operators were inclined to do so. This mutual recrimination reflects the political importance surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The CMA has stated it will strengthen monitoring of the fuel sector, indicating that regulatory scrutiny will tighten. Yet retailers contend this heightened oversight overlooks the core issue: they are responding to real supply limitations and wholesale price movements, not creating artificial scarcity for profit. Asda’s Allan Leighton highlighted that the state benefits substantially from fuel duty and VAT, possibly gaining more from the price surge than fuel retailers. This observation has introduced an uncomfortable dimension to the debate, suggesting that criticism from Westminster may overlook the state’s own financial interests in elevated fuel costs.
Asda’s defence and procurement challenges
As the UK’s second largest fuel retailer, Asda has found itself at the centre of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, emphasising 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 unusually high customer demand, but maintained that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements underscore a key separation between profiteering and supply management. When demand surges unexpectedly, as has happened after the Middle East tensions, retailers may find it challenging to maintain normal inventory levels despite their best efforts. The Association of Petrol Retailers corroborated this claim, admitting sporadic supply problems at “a handful of forecourts for one retailer” but asserting that supply across the UK is functioning smoothly. The body counselled drivers that there is no requirement to modify their regular buying patterns, indicating that reports of shortages are overstated or confined to specific areas.
Middle Eastern instability driving bulk pricing
The sharp rise in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, following military strikes between the US, Israel and Iran roughly a month earlier. These regional shifts have generated considerable instability in global oil markets, forcing wholesale costs up and obliging retailers to transfer costs to consumers at the pump. The RAC has recorded 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 drive prices upward still, especially should supply routes through critical chokepoints become disrupted.
The timing of these cost rises has turned out to be especially difficult for British motorists approaching the Easter break. Families planning driving holidays encounter significantly higher fuel bills, with the cost of topping up a standard family vehicle now surpassing £82 for standard petrol—roughly £9.50 more than just a month before. Diesel cars are affected to an even greater extent, with a full tank now running to over £97, representing a £19 increase. The RAC’s Simon Williams described the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the cumulative impact on household budgets 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 |
Oil market volatility and geopolitical factors
Global oil markets remain highly responsive to Middle Eastern developments, with crude prices mirroring investor concerns about possible supply disruptions. The attacks on Iran have heightened uncertainty about regional stability, leading traders to demand risk premiums on petroleum contracts. 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 conflict could spark further price increases, especially if major shipping routes or manufacturing plants face disruption.
Government revenue and impact on consumers
As petrol prices keep rising steadily, the government has found itself in an difficult situation. Whilst ministers have publicly criticised fuel retailers for potential profiteering, the Treasury has discreetly gained considerably 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 executive chairman Allan Leighton pointedly noted this inconsistency, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own gains from elevated petrol costs.
The broader financial consequences transcend personal family finances to encompass price increases across the entire economy. Elevated petrol prices feed through supply networks, impacting haulage expenses for products and services. SMEs dependent on fuel-heavy processes encounter considerable challenges, with freight operators and courier services absorbing significant cost increases. Consumer spending power falls as families redirect money toward petrol pumps rather than different expenditures, likely slowing economic growth. The RAC has recommended drivers to organise refuelling efficiently and utilise fuel-price apps to find the lowest-priced local fuel retailers, though these steps offer only marginal relief against the wider price increase.
- Government collects set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise across all sectors and industries
- Consumer non-essential spending falls as family finances prioritise necessary fuel spending
What motorists ought to do now
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 mapping out trips methodically and utilising price-comparison applications to identify the cheapest forecourts in their local region. Whilst such measures offer only modest savings, they can accumulate meaningfully over time. Drivers should also consider whether unnecessary trips can be deferred or consolidated to reduce overall fuel consumption. For those preparing for the Easter break, arranging travel plans ahead of time and topping up at budget-friendly forecourts before undertaking longer drives could assist in reducing the effect of elevated pump prices on vacation finances.
- Use petrol price finder tools to find the most affordable nearby petrol stations before filling up
- Merge trips where possible and defer non-essential trips to reduce consumption
- Fill up at more affordable stations before embarking on extended Easter break trips
- Map your journey with care to improve fuel economy and reduce total costs
