Petrol prices have breached the 150p-per-litre mark for the first time in nearly two years, fuelling the argument over whether fuel retailers are exploiting surging oil costs for profit. The typical cost for unleaded petrol rose past the symbolic threshold on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The sharp increases, which have increased by around £10 to the price of topping up a standard family vehicle in just a month, follow geopolitical 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 strongly denied accusations of profiteering, instead pointing to ministers for unjustly blaming at petrol station owners struggling with constrained supply chains.
The 150p ceiling surpassed
The milestone marks a important juncture for British motorists, who have watched fuel costs increase progressively since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a full 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 start planning their Easter trips and summer breaks, when fuel demand typically reaches its highest levels.
Whilst the current prices remain below the record highs recorded after Russia’s invasion of Ukraine in 2022, the swift increase has revived concerns about cost and availability. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s findings shows that petrol has increased 17p per litre in the identical timeframe. 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 threatens to worsen challenges for motorists across the country.
- Unleaded petrol now 17p costlier per litre than pre-conflict levels
- Diesel prices have increased 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 challenge on government accusations
The intensifying row over fuel pricing has revealed a widening divide between the government and forecourt operators, who argue they are being wrongly targeted for circumstances beyond their control. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid 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 truly narrowed during the latest surge, leaving scant scope for profiteering even if operators were disposed to act. This mutual recrimination reflects the political importance surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The CMA has announced it will strengthen monitoring of the fuel sector, signalling that regulatory scrutiny will tighten. Yet fuel retailers contend this increased scrutiny misses the fundamental point: they are responding 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, possibly gaining more from the price surge than retailers do. This remark has introduced an uncomfortable dimension to the discussion, implying that government criticism may disregard the state’s own economic stakes in higher fuel prices.
Asda’s defence and supply difficulties
As the UK’s second largest fuel supplier, Asda has positioned itself at the heart of the pricing row. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, emphasising instead that fuel volumes have surged significantly, with demand far exceeding available supply. He conceded that a small number of pumps have briefly stopped operating due to exceptional 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 remarks underscore a important separation between profit-seeking and inventory control. When demand increases sharply, as took place after the regional tensions in the Middle East, retailers can struggle to maintain standard inventory levels despite their best efforts. The Association of Petrol Retailers corroborated this claim, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but asserting that overall UK supply is flowing normally. The body counselled drivers that there is no need to change their normal purchasing habits, indicating that reports of shortages are overstated or localised.
Middle East instability driving bulk pricing
The marked increase in petrol and diesel prices has been closely connected to escalating tensions in the Middle East, in the wake of armed operations between the US, Israel and Iran roughly a month earlier. These political changes have generated considerable instability in global oil markets, pushing wholesale costs upwards and obliging retailers to hand on rises to consumers at the pump. The RAC has documented that regular fuel has risen by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that additional geopolitical disruption could drive prices upward still, especially should transport corridors through critical chokepoints become disrupted.
The scheduling of these price increases has proven particularly painful for British motorists heading into the Easter holidays. Families organising driving holidays encounter considerably elevated fuel bills, with the cost of filling a typical family car now exceeding £82 for standard petrol—roughly £9.50 more than just a month before. Diesel-powered vehicles are impacted even more severely, with a complete fill-up now running to over £97, representing a £19 rise. The RAC’s Simon Williams described the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the combined effect on family finances during what should 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 political tensions
Global oil markets remain highly sensitive to Middle Eastern events, with crude prices mirroring investor worries about possible disruptions to supply. The attacks on Iran have increased doubt about stability in the region, leading traders to demand risk premiums on petroleum contracts. Whilst current prices stay below the exceptional highs witnessed following Russia’s military incursion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is concerning. Energy analysts suggest that any further escalation in conflict could trigger additional price spikes, particularly if major transport corridors or production facilities experience disruption.
Public finances and impact on consumers
As petrol prices maintain their upward climb, 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 stays constant regardless of the wholesale cost, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this contradiction, 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 go further than individual household budgets to encompass inflationary forces throughout the wider economy. Increased fuel expenses feed through distribution networks, impacting transport expenses for goods and services. Small businesses relying on fuel-intensive operations encounter considerable challenges, with haulage companies and courier services bearing substantial cost rises. Household purchasing power falls as families redirect money toward petrol pumps rather than different expenditures, potentially dampening GDP growth. The RAC has counselled drivers to organise refuelling efficiently and employ price-checking tools to locate the cheapest local forecourts, though these steps provide limited assistance against the overall cost escalation.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise throughout various sectors and industries
- Consumer non-essential spending declines as household budgets prioritise essential fuel purchases
What motorists ought to do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being urged to implement a more planned strategy to refuelling. The RAC has highlighted the value of planning journeys carefully and using price-comparison tools to identify the cheapest forecourts in their surrounding neighbourhood. Whilst such measures offer only modest savings, they can build substantially over time. Drivers should also consider whether discretionary journeys can be postponed or combined to lower total fuel usage. For those preparing for the Easter break, arranging travel plans ahead of time and topping up at budget-friendly forecourts before undertaking longer drives could aid in lessening the burden of higher petrol rates on holiday budgets.
- Use petrol price finder tools to find the most affordable nearby petrol stations before filling up
- Combine journeys where feasible and postpone unnecessary journeys to reduce consumption
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and reduce total costs
