Petrol prices have breached the 150p-per-litre mark for the first occasion in nearly two years, heightening the debate over whether petrol stations are exploiting surging oil costs for financial gain. The typical cost for unleaded petrol rose past the symbolic threshold on Friday, whilst diesel surged past 177p, based on figures from the RAC. The notable jumps, which have added nearly £10 to the price of topping up a typical family car in only a month, follow military 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 profiteering, instead blaming ministers for unfairly “pointing the finger” at petrol station owners battling restricted supply networks.
The 150p ceiling surpassed
The milestone constitutes a significant moment for British motorists, who have observed fuel costs climb steadily since the Middle East tensions began. For a typical family car requiring a 55-litre tank, drivers are now facing bills exceeding £82 for a full tank of unleaded petrol—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 especially badly timed, arriving just as families commence planning their Easter trips and summer breaks, when fuel demand traditionally peaks.
Whilst the present prices remain below the record highs witnessed after Russia’s invasion of Ukraine in 2022, the swift increase has reignited worries regarding cost and availability. Diesel has fared even worse, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s analysis reveals that unleaded petrol has increased 17p per litre in the same period. With supply chains already strained and some petrol stations experiencing temporary pump closures caused by exceptional demand, the mix of higher prices and possible supply problems risks compound difficulties for motorists throughout the nation.
- Unleaded petrol now 17p costlier per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since the tensions started
- Filling up a family car costs roughly £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back on government accusations
The intensifying row over fuel pricing has highlighted a growing rift between the government and forecourt operators, who argue they are being unjustly blamed for circumstances outside their remit. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers during the price surge. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and large retailers like Asda have insisted that margins have truly narrowed during the current increase, leaving minimal space for profiteering even if operators were disposed to act. This blame-shifting reflects the public concern surrounding fuel costs, which materially influence household budgets and consumer views of government competence.
The Competition and Markets Authority has stated it will strengthen monitoring of the petrol market, signalling that regulatory scrutiny will tighten. Yet retailers argue this heightened oversight overlooks the fundamental point: they are reacting to real supply limitations and wholesale price fluctuations, not creating artificial scarcity for profit. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and value-added tax, possibly gaining more from the price spike than fuel retailers. This observation has added an awkward element to the debate, suggesting that government criticism may disregard the government’s own economic stakes in elevated fuel costs.
Asda’s defence and procurement difficulties
As the UK’s second-biggest fuel supplier, 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, stressing instead that fuel volumes have increased substantially, with demand far exceeding available supply. He acknowledged 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 anticipates the affected pumps to return to operation following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements underscore a key difference between profit-seeking and inventory control. When demand increases sharply, as has happened in the wake of the regional tensions in the Middle East, retailers can find it difficult to maintain standard stock levels despite making every effort. The Petrol Retailers Association supported this claim, admitting sporadic supply problems at “a handful of forecourts for one retailer” but insisting that supply across the UK is operating as usual. The body recommended drivers that there is no requirement to modify their regular shopping behaviour, indicating that accounts of supply issues have been exaggerated or isolated.
Middle Eastern conflicts driving wholesale prices
The sharp rise in petrol and diesel prices has been closely connected to rising conflict in the Middle East, in the wake of armed operations between the US, Israel and Iran approximately a month ago. These geopolitical developments have produced substantial volatility in global oil markets, driving wholesale prices higher and forcing retailers to hand on rises to consumers at the pump. The RAC has recorded that standard petrol has climbed by 17p per litre since the fighting commenced, whilst diesel has risen even more sharply by 35p per litre. Analysts alert that additional geopolitical disruption could push prices higher still, notably if supply routes through essential bottlenecks become blocked.
The timing of these price increases has turned out to be particularly painful for British drivers approaching the Easter break. Families organising driving holidays encounter considerably elevated 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 earlier. Diesel-powered vehicles are affected to an even greater extent, with a complete fill-up now costing over £97, constituting a £19 increase. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the combined effect on family finances 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 developments, with crude prices reflecting investor concerns about possible disruptions to supply. The attacks on Iran have heightened doubt about regional stability, leading traders to demand premium rates on petroleum contracts. Whilst current prices stay below the exceptional highs witnessed following Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts suggest that any additional escalation in conflict could trigger additional price spikes, particularly if major shipping routes or manufacturing plants face disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has found itself in an awkward position. Whilst government officials have openly condemned fuel retailers for potential profiteering, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel remains fixed regardless of the market price, meaning the government collects the same tax per litre regardless of whether 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 more extensive economic implications extend beyond personal family finances to include price increases throughout the wider economy. Increased fuel expenses pass through distribution networks, impacting delivery costs for goods and services. Small businesses dependent on fuel-intensive operations experience significant difficulty, with freight operators and logistics providers facing major expense increases. Consumer purchasing capacity falls as people channel spending to fuel stations rather than different expenditures, potentially dampening economic expansion. The RAC has recommended motorists to organise refuelling efficiently and utilise fuel-price apps to find the most affordable nearby petrol stations, though these steps offer only marginal relief against the broader price surge.
- Government collects fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures increase as shipping expenses rise across all sectors and industries
- Consumer non-essential spending declines as household budgets prioritise essential fuel purchases
What motorists should do at present
With petrol prices displaying no immediate prospect of falling, motorists are being advised to implement a more planned strategy to refuelling. The RAC has stressed the significance of planning journeys carefully and using price-comparison tools to find the lowest-priced fuel retailers in their surrounding neighbourhood. Whilst such steps deliver only limited savings, they can accumulate meaningfully over time. Drivers should also consider whether discretionary journeys can be postponed or combined to reduce overall fuel consumption. For those dealing with the Easter period, booking travel plans in advance and topping up at budget-friendly forecourts before setting out on extended journeys could assist in reducing the effect of increased fuel costs on vacation finances.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before refuelling
- Combine journeys where possible and defer unnecessary journeys to reduce consumption
- Fill up at more affordable stations before embarking on extended Easter break trips
- Plan routes carefully to improve fuel economy and minimise overall expenditure
