Petrol prices have breached the 150p-per-litre threshold for the first time in nearly two years, heightening the discussion over whether petrol stations are capitalising on surging oil costs for financial gain. The average price for unleaded petrol exceeded the important mark on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The steep rises, which have pushed up by £10 to the cost of filling a typical family car in just a month, follow military tensions in the Middle East that erupted a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has firmly rejected accusations of profiteering, instead criticising ministers for unfairly “pointing the finger” at forecourt operators battling restricted supply networks.
The 150p threshold broken
The milestone represents a significant moment for British motorists, who have watched fuel costs climb steadily since the Middle East tensions began. For a typical family car 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 affect households already grappling with the rising cost of living. The increases are especially badly timed, arriving just as families begin planning their Easter trips and summer breaks, when fuel demand typically reaches its highest levels.
Whilst the present prices remain below the peak levels witnessed after Russia’s attack on Ukraine in 2022, the swift increase has revived concerns about cost and availability. Diesel has struggled even more, climbing 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 identical timeframe. With supply chains already strained and some petrol stations experiencing brief shutdowns due to unusually high demand, the combination of elevated costs and potential availability issues threatens to worsen challenges for motorists throughout the nation.
- Unleaded fuel now 17p costlier per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since tensions began
- Filling a family car costs approximately £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back against government accusations
The escalating row over fuel pricing has highlighted a widening divide 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 during the cost escalation. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have actually compressed during the latest surge, leaving little room for profiteering even if operators were inclined to do so. This mutual recrimination reflects the political importance surrounding fuel costs, which significantly affect household budgets and popular understanding of government competence.
The CMA has stated it will strengthen monitoring of the petrol market, indicating that regulatory scrutiny will increase. Yet retailers contend this increased scrutiny misses the core issue: they are reacting to real supply limitations and wholesale price fluctuations, not creating artificial scarcity for financial gain. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and VAT, possibly gaining more from the price surge than fuel retailers. This remark has introduced an awkward element to the debate, suggesting that government criticism may disregard 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 heart of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is taking advantage of the situation, stressing instead that fuel volumes have increased substantially, with demand far exceeding available supply. He conceded that a small number of pumps have briefly stopped operating due to unusually high customer demand, but maintained that Asda has not shut down any petrol stations completely. 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 observations emphasise a important separation between profiteering and supply management. When demand increases sharply, as has happened following the regional tensions in the Middle East, retailers can struggle to maintain normal inventory levels despite their best efforts. The Association of Petrol Retailers corroborated this narrative, acknowledging sporadic supply problems at “a handful of forecourts for one retailer” but maintaining that supply across the UK is flowing normally. The association advised drivers that there is no reason to modify their regular purchasing habits, indicating that reports of shortages have been inflated or localised.
Middle East instability increasing wholesale prices
The marked increase 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 roughly a month earlier. These regional shifts have created significant uncertainty in global oil markets, pushing wholesale costs upwards and compelling retailers to hand on rises to consumers on the forecourt. The RAC has noted that standard petrol has risen by 17p per litre since hostilities started, whilst diesel has increased even more dramatically by 35p per litre. Analysts warn that further regional instability could push prices higher still, particularly if transport corridors through critical chokepoints become interrupted.
The scheduling of these price increases has proven particularly painful for British motorists approaching the Easter holidays. Families planning driving holidays encounter considerably elevated fuel bills, with the expense of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel cars are impacted to an even greater extent, with a complete fill-up now costing over £97, representing a £19 rise. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the combined effect on family finances during what ought to be a period 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 sectors stay highly sensitive to Middle Eastern developments, with crude prices mirroring investor worries about potential disruptions to supply. The attacks on Iran have increased doubt about stability in the region, leading traders to demand 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 worrying. Energy analysts suggest that any additional escalation in hostilities could trigger further price increases, especially if major shipping routes or production facilities face disruption.
Government revenue and consumer impact
As petrol prices maintain their upward climb, the government has been placed in an awkward position. Whilst ministers have publicly criticised fuel retailers for potential profiteering, the Treasury has quietly benefited substantially from the surge in pump prices. Excise duty on fuel remains fixed regardless of the wholesale cost, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this inconsistency, suggesting that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own gains from elevated petrol costs.
The more extensive economic implications transcend domestic spending limits to cover price increases across all economic sectors. Elevated petrol prices flow through distribution networks, influencing transport expenses for goods and services. Smaller enterprises reliant on fuel-intensive operations encounter considerable challenges, with haulage companies and courier services facing major expense increases. Consumer spending power diminishes as households allocate funds to fuel stations rather than different expenditures, potentially dampening GDP growth. The RAC has recommended motorists to organise refuelling efficiently and employ price-checking tools to identify the cheapest local forecourts, though these steps deliver modest help against the overall cost escalation.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as shipping expenses rise across all sectors and industries
- Consumer non-essential spending declines as family finances prioritise essential fuel purchases
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 carefully planning journeys and utilising price-comparison applications to find the lowest-priced fuel retailers in their local area. Whilst such steps deliver only limited savings, they can accumulate meaningfully over time. Drivers ought to also think about whether discretionary journeys can be deferred or consolidated to minimise overall fuel expenditure. For those preparing for the Easter break, arranging travel plans ahead of time and topping up at budget-friendly forecourts before setting out on extended journeys could aid in lessening the burden of increased fuel costs on holiday budgets.
- Use fuel price comparison apps to locate the most affordable nearby petrol stations before refuelling
- Merge trips where possible and postpone unnecessary journeys to lower fuel usage
- Fill up at more affordable stations before embarking on extended Easter break trips
- Plan routes carefully to maximise fuel efficiency and reduce total costs
