Petrol prices have breached the 150p-per-litre milestone for the first time in nearly two years, intensifying the discussion over whether petrol stations are taking advantage of surging oil costs for profit. The typical cost for standard petrol rose past the important mark on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The sharp increases, which have increased by around £10 to the price of topping up a typical family car in only a month, follow regional conflict in the Middle East that broke out a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of profiteering, instead blaming ministers for unjustly blaming at forecourt operators facing constrained supply chains.
The 150p level exceeded
The milestone marks a important juncture for British motorists, who have observed fuel costs climb steadily since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre 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 affect households already dealing with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families commence planning their Easter getaways and summer holidays, when demand for fuel traditionally peaks.
Whilst the current prices remain below the peak levels recorded after Russia’s attack on Ukraine in 2022, the rapid acceleration has reignited worries regarding affordability and accessibility. Diesel has fared even worse, climbing 35p per litre since the conflict began and now standing at over 177p. The RAC’s analysis shows that unleaded petrol has risen 17p per litre in the same period. With supply chains already stretched and some forecourts experiencing temporary pump closures due to exceptional demand, the mix of elevated costs and possible supply problems risks worsen challenges for drivers across the country.
- Unleaded fuel now 17p costlier per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since tensions began
- Filling 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 against official allegations
The escalating row over fuel pricing has exposed a widening divide between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances beyond their control. Ministers have adopted progressively confrontational 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 major chains like Asda have insisted that margins have actually compressed during the latest surge, leaving little room for profiteering even if operators were disposed to act. This finger-pointing reflects the political importance surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The Competition and Markets Authority has announced it will intensify monitoring of the petrol market, indicating that regulatory scrutiny will tighten. Yet retailers argue this heightened oversight overlooks the core issue: they are reacting to genuine supply constraints and wholesale price fluctuations, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton highlighted that the state benefits substantially from fuel duty and VAT, potentially earning more from the price surge than fuel retailers. This observation has added an awkward element to the debate, implying that criticism from Westminster may disregard the state’s own economic stakes in higher fuel prices.
Asda’s defence and procurement difficulties
As the UK’s second largest fuel retailer, Asda has positioned itself at the heart of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, stressing instead that fuel volumes have increased substantially, with demand substantially outstripping available supply. He conceded that a small number of pumps have temporarily gone out of service due to exceptional customer demand, but maintained that Asda has not closed any forecourts entirely. The company expects affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements underscore a critical separation between profit-seeking and supply management. When demand surges unexpectedly, as has occurred after the Middle East tensions, retailers may find it challenging to maintain standard stock levels despite making every effort. The Association of Petrol Retailers backed up this narrative, recognising sporadic supply problems at “a small number of forecourts for one retailer” but insisting that overall UK supply is operating as usual. The body counselled drivers that there is no need to change their normal purchasing habits, suggesting that accounts of supply issues have been inflated or localised.
Middle East conflicts driving bulk pricing
The notable surge in petrol and diesel prices has been closely connected to rising conflict in the Middle East, following armed operations between the US, Israel and Iran approximately a month ago. These regional shifts have produced substantial volatility in worldwide petroleum markets, driving wholesale prices higher and forcing retailers to transfer costs to consumers at fuel stations. The RAC has documented that standard petrol has risen by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts caution that ongoing tensions could drive prices upward still, particularly if transport corridors through key passages become interrupted.
The scheduling of these price increases has proven especially difficult for British motorists heading into the Easter holidays. Families organising driving holidays encounter significantly higher petrol costs, with the expense of filling a typical family car now surpassing £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel cars are affected even more severely, with a full tank now running to over £97, constituting a £19 rise. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the combined effect on household budgets 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 events, with crude prices reflecting investor worries about possible supply disruptions. The attacks on Iran have heightened uncertainty about regional stability, prompting traders to demand risk premiums on petroleum contracts. Whilst current prices stay below the extraordinary peaks seen after Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—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 consumer impact
As petrol prices maintain their upward climb, the government has found itself in an difficult situation. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has quietly benefited substantially from the surge in pump prices. 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, suggesting that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own gains from elevated petrol costs.
The broader economic implications go further than personal family finances to include inflationary forces throughout the wider economy. Elevated petrol prices pass through supply networks, influencing delivery costs for products and services. Small businesses dependent on fuel-heavy processes face particular hardship, with freight operators and logistics providers absorbing significant cost increases. Consumer spending power declines as people channel spending toward petrol pumps rather than other purchases, potentially dampening economic growth. The RAC has counselled motorists to plan refuelling strategically and utilise fuel-price apps to locate the most affordable nearby petrol stations, though such measures deliver modest help against the wider price increase.
- Government collects set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise across all sectors and industries
- Consumer discretionary spending falls as household budgets prioritise essential fuel purchases
What motorists should 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 stressed the significance of carefully planning journeys and leveraging price-comparison platforms to identify the cheapest forecourts in their local area. Whilst such approaches provide only marginal gains, they can build substantially over time. Drivers may also wish to evaluate whether unnecessary trips can be delayed or merged to lower total fuel usage. For those facing the Easter holidays, reserving travel arrangements early and filling up at cheaper locations before setting out on extended journeys could aid in lessening the burden of elevated pump prices on holiday spending.
- Use petrol price finder tools to find the most affordable nearby petrol stations before refuelling
- Combine journeys where possible and defer unnecessary journeys to lower fuel usage
- Fill up at more affordable stations before embarking on extended Easter break trips
- Map your journey with care to improve fuel economy and minimise overall expenditure
