Petrol prices have exceeded the 150p-per-litre milestone for the first time in nearly two years, heightening the debate over whether petrol stations are taking advantage of rocketing oil costs for profit. The typical cost for standard petrol rose past the important mark on Friday, whilst diesel surged past 177p, according to figures from the RAC. The steep rises, which have pushed up by £10 to the price of topping up a typical family car in only a month, follow geopolitical tensions in the region that broke out a month ago when the US and Israel carried out operations on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of profiteering, instead criticising ministers for unfairly “pointing the finger” at petrol station owners facing constrained supply chains.
The 150p barrier breached
The milestone constitutes a important juncture for British motorists, who have observed fuel costs rise consistently since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre tank, drivers are now facing bills exceeding £82 for a full tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has termed the breach of 150p as an unwanted milestone that will impact families already grappling with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families begin planning their Easter getaways and summer breaks, when demand for fuel traditionally peaks.
Whilst the current prices remain below the peak levels witnessed after Russia’s attack on Ukraine in 2022, the rapid acceleration has reignited concerns about cost and availability. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s analysis shows that petrol has increased 17p per litre in the same period. With distribution networks already stretched and some petrol stations experiencing temporary pump closures caused by exceptional demand, the mix of elevated costs and potential availability issues risks compound difficulties for drivers across the country.
- Unleaded fuel now 17p costlier per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since the tensions started
- Filling up a family car costs approximately £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back against government accusations
The escalating row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances outside their remit. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers throughout the cost escalation. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the recent spike, leaving little room for profiteering even if operators were willing to do so. This finger-pointing reflects the political importance surrounding fuel costs, which directly impact household budgets and consumer views of government competence.
The Competition and Markets Authority has announced it will intensify monitoring of the fuel sector, indicating that regulatory oversight will tighten. Yet retailers contend this increased scrutiny overlooks the fundamental point: they are responding to genuine supply constraints 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, potentially earning more from the price surge than fuel retailers. This observation has added an awkward element to the debate, implying that criticism from Westminster may overlook the government’s own economic stakes in elevated fuel costs.
Asda’s defence and supply pressures
As the UK’s second largest fuel supplier, Asda has found itself at the heart of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is taking advantage of the situation, stressing instead that fuel volumes have surged significantly, 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 maintained 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 key difference between profit-seeking and inventory control. When demand spikes dramatically, as has occurred following the Middle East tensions, retailers can find it difficult to keep up inventory levels in spite of their efforts. The Association of Petrol Retailers corroborated this narrative, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but maintaining that the UK’s overall supply is functioning smoothly. The association advised drivers that there is no need to change their normal purchasing habits, indicating that claims of stock problems are overstated or isolated.
Middle Eastern tensions increasing wholesale prices
The sharp rise in petrol and diesel prices has been firmly tied to mounting instability in the Middle East, subsequent to combat actions between the US, Israel and Iran approximately a month ago. These political changes have generated considerable instability in worldwide petroleum markets, pushing wholesale costs upwards and obliging retailers to pass increases through to consumers at the pump. The RAC has documented that standard petrol has increased by 17p per litre since the fighting commenced, whilst diesel has increased even more dramatically by 35p per litre. Analysts warn that further regional instability could force prices up still, notably if distribution channels through essential bottlenecks become interrupted.
The scheduling of these cost rises has turned out to be particularly painful for British motorists heading into the Easter break. Families planning road trips 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 cars are affected even more severely, with a complete fill-up now costing over £97, constituting a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the cumulative impact on household budgets 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 geopolitical factors
Global oil sectors remain highly responsive to Middle Eastern events, with crude prices reflecting investor concerns about potential disruptions to supply. The attacks on Iran have increased doubt about stability in the region, prompting traders to demand premium rates 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 worrying. Energy analysts suggest that any further escalation in conflict could spark additional price spikes, particularly if major transport corridors or production facilities experience disruption.
Public finances and consumer impact
As petrol prices continue their upward trajectory, the government has found itself in an difficult situation. 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 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 accusing retailers of exploiting the crisis, the government ought to recognise its own gains from elevated petrol costs.
The broader financial consequences extend beyond individual household budgets to cover inflationary forces across all economic sectors. Increased fuel expenses flow through distribution networks, impacting delivery costs for goods and services. Smaller enterprises relying on high-fuel activities encounter considerable challenges, with transport firms and courier services facing major expense increases. Consumer spending power falls as families redirect money toward petrol pumps rather than different expenditures, possibly reducing economic growth. The RAC has counselled vehicle owners to schedule fuel purchases carefully and use price-comparison applications to find the cheapest local forecourts, though such measures offer only marginal relief against the overall cost escalation.
- Government collects set excise tax on every litre sold, regardless 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 focus on essential fuel purchases
What drivers should do at present
With petrol prices displaying no immediate prospect of falling, motorists are being urged to take a more calculated approach to refuelling. The RAC has highlighted the value of mapping out trips methodically and using price-comparison tools to locate the most affordable petrol stations in their local region. Whilst such measures offer only modest savings, they can add up considerably over time. Drivers ought to also think about whether discretionary journeys can be delayed or merged to lower total fuel usage. For those preparing for the Easter break, reserving travel arrangements early and refuelling at lower-cost stations before undertaking longer drives could aid in lessening the burden of elevated pump prices on vacation finances.
- Use fuel price comparison apps to locate the cheapest local forecourts before refuelling
- Merge trips where feasible and defer non-essential trips to lower fuel usage
- Fill up at more affordable stations before embarking on longer Easter holiday journeys
- Plan routes carefully to improve fuel economy and reduce total costs
