Petrol prices have surpassed the 150p-per-litre milestone for the first time in nearly two years, fuelling the debate over whether fuel retailers are taking advantage of rocketing oil costs for financial gain. The average price for unleaded petrol climbed above the important mark on Friday, whilst diesel surged past 177p, according to figures from the RAC. The steep rises, which have increased by around £10 to the cost of filling a typical family car in just a month, follow geopolitical tensions in the region that erupted a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has strongly denied accusations of excessive profit-taking, instead pointing to ministers for unjustly blaming at forecourt operators facing restricted supply networks.
The 150p level exceeded
The milestone represents a important juncture for British motorists, who have watched fuel costs rise consistently since the Middle East tensions began. For a typical family car requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwanted milestone that will impact families already dealing with the rising cost of living. The increases are remarkably poorly timed, arriving just as families begin planning their Easter trips and summer holidays, when demand for fuel typically reaches its highest levels.
Whilst the current prices remain below the peak levels witnessed following Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived worries regarding cost and availability. Diesel has fared even worse, rising 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 stretched and some petrol stations reporting brief shutdowns caused by exceptional demand, the mix of higher prices and potential availability issues risks compound difficulties for drivers throughout the nation.
- Unleaded fuel now 17p more expensive 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 a month earlier
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back on state claims
The growing row over fuel pricing has revealed a deepening split 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 throughout the pricing spike. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and leading operators like Asda have insisted that margins have actually compressed during the latest surge, 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 consumer views of government competence.
The CMA has announced it will strengthen oversight of the petrol market, indicating that regulatory scrutiny will tighten. Yet fuel retailers contend this heightened oversight misses the core issue: they are reacting to real supply limitations and wholesale price fluctuations, not creating false shortages for financial gain. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and value-added tax, possibly gaining more from the price spike than fuel retailers. This remark has introduced an uncomfortable dimension to the debate, implying that government criticism may overlook the government’s own economic stakes in higher fuel prices.
Asda’s defence and procurement difficulties
As the UK’s second-biggest fuel supplier, Asda has found itself at the centre of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is taking advantage of the situation, emphasising instead that fuel volumes have increased substantially, with demand substantially outstripping available supply. He acknowledged that a small number of pumps have briefly stopped operating due to exceptional customer demand, but maintained that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks highlight a critical distinction between profit-seeking and supply management. When demand increases sharply, as has occurred in the wake of the Middle East tensions, retailers can struggle to maintain normal stock levels in spite of their efforts. The Petrol Retailers Association corroborated this narrative, admitting isolated availability issues at “a small number of forecourts for one retailer” but asserting that supply across the UK is functioning smoothly. The association advised drivers that there is no requirement to alter their usual purchasing habits, indicating that claims of stock problems are overstated or localised.
Middle East conflicts pushing bulk pricing
The notable surge in petrol and diesel prices has been firmly tied to escalating tensions in the Middle East, subsequent to armed operations between the US, Israel and Iran about a month prior. These geopolitical developments have created significant uncertainty in global oil markets, forcing wholesale costs up and compelling retailers to pass increases through to consumers at the pump. The RAC has noted that regular fuel has climbed by 17p per litre since the fighting commenced, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that additional geopolitical disruption could force prices up still, especially should supply routes through critical chokepoints become disrupted.
The scheduling of these cost rises has turned out to be especially difficult for British motorists heading into the Easter break. Families planning driving holidays encounter considerably elevated petrol costs, with the expense of topping up a standard family vehicle now surpassing £82 for standard petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles are impacted to an even greater extent, with a full tank now costing over £97, constituting a £19 rise. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” underlining the combined effect on household budgets during what ought to be a time 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 |
Crude oil volatility and geopolitical factors
Global oil markets remain highly responsive to Middle Eastern events, with crude prices mirroring investor concerns about potential disruptions to supply. The attacks on Iran have heightened uncertainty about stability in the region, leading traders to demand premium rates on petroleum contracts. Whilst current prices remain below the extraordinary peaks seen after Russia’s military incursion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts indicate that any additional escalation in conflict could spark further price increases, especially if major transport corridors or manufacturing plants face 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 quietly benefited substantially 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 pointedly noted this inconsistency, proposing 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 effects transcend personal family finances to cover price increases across all economic sectors. Increased fuel expenses feed through distribution networks, affecting transport expenses for goods and services. SMEs reliant on fuel-heavy processes experience significant difficulty, with transport firms and delivery services facing major expense increases. Consumer spending power declines as families redirect money to fuel stations rather than alternative spending, possibly reducing economic growth. The RAC has recommended motorists to organise refuelling efficiently and employ price-checking tools to find the most affordable nearby petrol stations, though these approaches offer only marginal relief against the overall cost escalation.
- Government receives 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 discretionary spending falls as family finances prioritise necessary fuel spending
What drivers should do at present
With petrol prices displaying no immediate prospect of falling, motorists are being advised to adopt a more strategic approach to refuelling. The RAC has stressed the significance of mapping out trips methodically and utilising price-comparison applications to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such measures offer only modest savings, they can add up considerably over time. Drivers may also wish to evaluate whether discretionary journeys can be deferred or consolidated to reduce overall fuel consumption. For those dealing with the Easter period, arranging travel plans ahead of time and filling up at cheaper locations before undertaking longer drives could assist in reducing the effect of higher petrol rates on holiday spending.
- Use petrol price finder tools to find the most affordable nearby petrol stations before filling up
- Combine journeys where feasible and defer non-essential trips to lower fuel usage
- Fill up at cheaper locations before embarking on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and reduce total costs
