Petrol prices have surpassed the 150p-per-litre mark for the first time in nearly two years, fuelling the argument over whether fuel retailers are exploiting rocketing oil costs for financial gain. The average price for unleaded petrol climbed above the important mark on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The notable jumps, which have added nearly £10 to the price of topping up a standard family vehicle in only a month, follow military tensions in the region that flared up 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 criticising ministers for wrongly accusing at forecourt operators facing limited supply chains.
The 150p barrier breached
The milestone constitutes a important juncture for British motorists, who have seen fuel costs climb steadily since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwelcome milestone that will sting households already dealing with the rising cost of living. The increases are particularly poorly timed, arriving just as families begin planning their Easter getaways and summer breaks, when fuel demand typically reaches its highest levels.
Whilst the current prices stay below the record highs recorded following Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited worries regarding cost and availability. Diesel has performed considerably worse, climbing 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s analysis shows that petrol has increased 17p per litre in the same period. With distribution networks already stretched and some petrol stations experiencing brief shutdowns due to unusually high demand, the combination of elevated costs and potential availability issues risks compound difficulties for drivers across the country.
- Unleaded fuel now 17p more expensive per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since tensions began
- Filling a family car costs roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers challenge against official allegations
The escalating row over fuel pricing has exposed a deepening split 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 throughout the pricing spike. 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 genuinely tightened during the current increase, leaving little room for profiteering even if operators were willing to do so. This mutual recrimination reflects the political sensitivity surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The Competition and Markets Authority has stated it will strengthen oversight of the petrol market, signalling that regulatory oversight will tighten. Yet retailers contend this heightened oversight overlooks the core issue: they are reacting to real supply limitations and wholesale price movements, not engineering false shortages for profit. Asda’s Allan Leighton pointed out that the government itself profits significantly from fuel duty and VAT, potentially earning more from the price surge than retailers do. This remark has added an awkward element to the discussion, suggesting that criticism from Westminster may overlook the government’s own financial interests in elevated fuel costs.
Asda’s defence and supply difficulties
As the UK’s second-biggest fuel retailer, Asda has positioned itself at the heart 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 briefly stopped operating due to exceptional 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 short-term rather than long-term.
Leighton’s remarks highlight a key difference between profit-seeking and supply management. When demand surges unexpectedly, as took place following the Middle East tensions, retailers can find it difficult to maintain normal inventory levels despite making every effort. The Association of Petrol Retailers backed up this account, recognising isolated availability issues at “a small number of forecourts for one retailer” but asserting that supply across the UK is operating as usual. The association advised drivers that there is no need to alter their usual shopping behaviour, suggesting that reports of shortages are overstated or isolated.
Middle Eastern tensions increasing wholesale prices
The notable surge in petrol and diesel prices has been directly linked to mounting instability in the Middle East, subsequent to military strikes 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 transfer costs to consumers on the forecourt. The RAC has recorded that standard petrol has climbed by 17p per litre since the conflict began, whilst diesel has risen even more sharply by 35p per litre. Analysts caution that further regional instability could drive prices upward still, notably if distribution channels through essential bottlenecks become disrupted.
The scheduling of these cost rises has turned out to be particularly painful for British motorists approaching the Easter holidays. 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 even more severely, with a complete fill-up now costing over £97, representing a £19 increase. The RAC’s Simon Williams described the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the cumulative impact on family finances 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 volatility and geopolitical factors
Global oil markets remain highly responsive to Middle Eastern developments, with crude prices mirroring investor worries about possible disruptions to supply. The attacks on Iran have increased doubt about regional stability, prompting traders to require risk premiums on petroleum contracts. Whilst current prices stay below the exceptional highs 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 hostilities could spark additional price spikes, especially if major shipping routes or manufacturing plants face disruption.
Government revenue and impact on consumers
As petrol prices continue their upward trajectory, the government has been placed in an difficult situation. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the spike in fuel costs. Excise duty on fuel remains fixed regardless of the wholesale cost, meaning the government receives identical duty per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this inconsistency, suggesting 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 implications go further than personal family finances to encompass inflation pressures across the entire economy. Increased fuel expenses flow through supply networks, influencing haulage expenses for goods and services. Smaller enterprises relying on fuel-intensive operations encounter considerable challenges, with freight operators and delivery services facing major expense increases. Consumer spending power diminishes as families redirect money toward petrol pumps rather than different expenditures, likely slowing economic expansion. The RAC has advised motorists to schedule fuel purchases carefully and employ price-checking tools to locate the lowest-priced local fuel retailers, though these approaches provide limited assistance against the overall cost escalation.
- Government receives fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures intensify as shipping expenses rise across all sectors and industries
- Consumer discretionary spending declines as family finances prioritise essential fuel purchases
What motorists ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being urged to adopt a more strategic approach to refuelling. The RAC has highlighted the value of carefully planning journeys and utilising price-comparison applications to locate the most affordable petrol stations in their local region. Whilst such measures offer only modest savings, they can accumulate meaningfully over time. Drivers ought to also think about whether discretionary journeys can be postponed or combined to lower total fuel usage. For those dealing with the Easter period, booking travel plans in advance and filling up at cheaper locations before undertaking longer drives could assist in reducing the effect of elevated pump prices on vacation finances.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before refuelling
- Merge trips where possible and defer unnecessary journeys to lower fuel usage
- Fill up at cheaper locations before setting out on extended Easter break trips
- Plan routes carefully to improve fuel economy and reduce total costs
