Petrol prices have breached the 150p-per-litre mark for the first time in almost two years, intensifying the argument over whether petrol stations are exploiting surging oil costs for profit. 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 steep rises, which have pushed up by £10 to the cost of filling a standard family vehicle in only a month, follow military tensions in the Middle East that flared up a month ago when the US and Israel conducted strikes on Iran. Asda’s executive chairman Allan Leighton has strongly denied accusations of profiteering, instead criticising ministers for unjustly blaming at petrol station owners facing constrained supply chains.
The 150p barrier breached
The milestone represents a important juncture for British motorists, who have observed fuel costs rise consistently since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre fuel tank, drivers are now encountering costs 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 impact families already struggling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families start planning their Easter getaways and summer holidays, when fuel demand typically reaches its highest levels.
Whilst the current prices remain below the peak levels recorded after Russia’s attack on Ukraine in 2022, the swift increase has revived concerns about cost and availability. Diesel has fared even worse, climbing 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis shows that unleaded petrol has risen 17p per litre in the identical timeframe. With distribution networks already stretched and some petrol stations reporting temporary pump closures due to exceptional demand, the mix of elevated costs and potential availability issues threatens to compound difficulties for motorists throughout the nation.
- Unleaded petrol now 17p more expensive per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since the tensions started
- Filling a family car costs approximately £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back against state claims
The escalating row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances beyond their control. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers amid the pricing spike. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and leading operators like Asda have insisted that margins have genuinely tightened during the recent spike, leaving scant scope for profiteering even if operators were disposed to act. This mutual recrimination reflects the public concern surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The Competition and Markets Authority has announced it will intensify oversight of the petrol market, signalling that regulatory oversight 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 engineering false shortages for financial gain. Asda’s Allan Leighton pointed out that the government itself benefits substantially from fuel duty and value-added tax, possibly gaining more from the price spike than retailers do. This remark has introduced an awkward element to the discussion, implying that criticism from Westminster may disregard the state’s own financial interests in elevated fuel costs.
Asda’s defence and procurement pressures
As the UK’s second largest fuel retailer, Asda has found itself at the heart of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, emphasising 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 unusually high customer demand, but insisted that Asda has not shut down any petrol stations completely. The company expects affected pumps to resume service following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements underscore a critical separation between profiteering and inventory control. When demand spikes dramatically, as has happened in the wake of 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 claim, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but insisting that overall UK supply is operating as usual. The body advised drivers that there is no reason to modify their regular buying patterns, indicating that accounts of supply issues are overstated or isolated.
Middle Eastern instability pushing wholesale prices
The notable surge in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, in the wake of combat actions between the US, Israel and Iran approximately a month ago. These political changes have produced substantial volatility in worldwide petroleum markets, forcing wholesale costs up and obliging retailers to transfer costs to consumers on the forecourt. The RAC has documented that regular fuel has risen by 17p per litre since hostilities started, whilst diesel has increased even more dramatically by 35p per litre. Analysts caution that additional geopolitical disruption could force prices up still, particularly if distribution channels through key passages become disrupted.
The timing of these price increases has turned out to be especially difficult for British drivers heading into the Easter break. Families organising driving holidays encounter considerably elevated petrol costs, with the cost of filling a typical family car now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles 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 characterised the crossing of the 150p-per-litre mark 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 |
Crude oil fluctuations plus political tensions
Global oil sectors stay highly responsive to Middle Eastern events, with crude prices reflecting investor worries about potential disruptions to supply. The attacks on Iran have heightened uncertainty about regional stability, leading traders to demand premium rates on petroleum contracts. Whilst current prices remain below the extraordinary peaks seen after Russia’s invasion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is concerning. Energy analysts suggest that any further escalation in conflict could spark further price increases, particularly if major shipping routes or production facilities experience disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has been placed 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 remains fixed regardless of the wholesale cost, meaning the government collects the same tax per litre no matter if petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this inconsistency, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own windfall from higher fuel prices.
The wider economic implications go further than personal family finances to include price increases throughout the wider economy. Higher fuel costs pass through supply networks, influencing haulage expenses for products and services. Smaller enterprises reliant on fuel-intensive operations face particular hardship, with transport firms and delivery services facing major expense increases. Consumer purchasing capacity diminishes as people channel spending toward petrol pumps rather than alternative spending, potentially dampening GDP growth. The RAC has recommended motorists to plan refuelling strategically and use price-comparison applications to locate the cheapest local forecourts, though such measures provide limited assistance against the broader price surge.
- Government collects set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending falls as household budgets focus on necessary fuel spending
What drivers ought to do at present
With petrol prices displaying no immediate prospect of falling, motorists are being encouraged to take a more calculated approach to refuelling. The RAC has highlighted the value of planning journeys carefully 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 minimise overall fuel expenditure. For those preparing for the Easter break, arranging travel plans ahead of time and refuelling at lower-cost stations before setting out on extended journeys could assist in reducing the effect of increased fuel costs on holiday spending.
- Use fuel price comparison apps to find the cheapest local forecourts before filling up
- Merge trips where possible and defer non-essential trips to reduce consumption
- Fill up at cheaper locations before embarking on extended Easter break trips
- Plan routes carefully to improve fuel economy and reduce total costs
