Petrol prices have exceeded the 150p-per-litre milestone for the first occasion in almost two years, intensifying the argument over whether fuel retailers are capitalising on soaring oil costs for profit. The average price for unleaded petrol climbed above the symbolic threshold on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The steep rises, which have increased by around £10 to the cost of filling a standard family vehicle in just a month, follow regional conflict 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 categorically refuted accusations of profiteering, instead criticising ministers for wrongly accusing at petrol station owners struggling with restricted supply networks.
The 150p threshold broken
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 encountering costs exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has termed the breach of 150p as an unwelcome milestone that will impact families already dealing with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families commence planning their Easter getaways and summer breaks, when fuel demand traditionally peaks.
Whilst the present prices remain below the peak levels witnessed following Russia’s attack on Ukraine in 2022, the swift increase has revived worries regarding cost and availability. Diesel has fared even worse, climbing 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis reveals that unleaded petrol has increased 17p per litre in the same period. With supply chains already stretched and some forecourts experiencing temporary pump closures due to exceptional demand, the combination of higher prices and potential availability issues risks compound difficulties for motorists across the country.
- Unleaded petrol now 17p more expensive per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since the tensions started
- Filling a family car costs approximately £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 exposed a widening divide between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances outside their remit. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid the pricing spike. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the current increase, leaving little room for profiteering even if operators were willing to do so. This blame-shifting reflects the political sensitivity surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The CMA has stated it will strengthen monitoring of the petrol market, indicating that regulatory oversight will increase. Yet fuel retailers argue this increased scrutiny misses the core issue: 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 state profits significantly from fuel duty and VAT, potentially earning more from the price surge than retailers do. This observation has introduced an awkward element to the debate, implying that criticism from Westminster may overlook the state’s own financial interests in elevated fuel costs.
Asda’s defence and supply difficulties
As the UK’s second-biggest fuel retailer, Asda has found itself at the centre of the pricing row. 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 insisted that Asda has not closed any forecourts entirely. The company expects affected pumps to resume service following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks emphasise a key separation between profit-seeking and supply management. When demand increases sharply, as took place in the wake of the regional tensions in the Middle East, retailers can struggle to keep up stock levels in spite of their efforts. The Petrol Retailers Association corroborated this claim, recognising sporadic supply problems at “a small number of forecourts for one retailer” but maintaining that overall UK supply is operating as usual. The association counselled drivers that there is no need to change their normal shopping behaviour, indicating that accounts of supply issues have been exaggerated or localised.
Middle Eastern conflicts increasing wholesale prices
The sharp rise 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 roughly a month earlier. These geopolitical developments have produced substantial volatility in international energy markets, pushing wholesale costs upwards and compelling retailers to pass increases through to consumers at the pump. The RAC has noted that unleaded petrol has risen by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that additional geopolitical disruption could force prices up still, notably if distribution channels through critical chokepoints become interrupted.
The scheduling of these cost rises has turned out to be particularly painful for British drivers approaching the Easter break. Families organising road trips face significantly higher petrol costs, with the cost of topping up a standard family vehicle now surpassing £82 for unleaded petrol—roughly £9.50 more than just a month before. Diesel cars are affected even more severely, with a full tank now running to over £97, constituting a £19 increase. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting 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 |
Oil market volatility and geopolitical factors
Global oil sectors stay highly responsive to Middle Eastern events, with crude prices mirroring investor concerns about potential supply disruptions. The attacks on Iran have increased uncertainty about regional stability, leading traders to demand risk premiums on petroleum contracts. Whilst current prices stay below the exceptional highs seen after Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is worrying. Energy analysts indicate that any further escalation in hostilities could trigger further price increases, especially if major transport corridors or manufacturing plants face disruption.
Public finances and impact on consumers
As petrol prices continue their upward trajectory, the government has been placed in an awkward position. Whilst government officials have openly condemned 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 receives identical duty per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this inconsistency, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own windfall from higher fuel prices.
The more extensive financial consequences go further than domestic spending limits to cover inflation pressures across all economic sectors. Increased fuel expenses pass through distribution networks, influencing delivery costs for goods and services. Smaller enterprises relying on fuel-intensive operations face particular hardship, with freight operators and delivery services facing major expense increases. Consumer spending power declines as families redirect money to fuel stations rather than different expenditures, likely slowing GDP growth. The RAC has recommended vehicle owners to plan refuelling strategically and use price-comparison applications to identify the cheapest local forecourts, though such measures offer only marginal relief against the broader price surge.
- Government receives fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures intensify as transport costs rise across all sectors and industries
- Consumer non-essential spending falls as household budgets prioritise essential fuel purchases
What drivers should do at present
With petrol prices showing no immediate signs of retreating, motorists are being encouraged to take a more calculated approach to refuelling. The RAC has highlighted the value of mapping out trips methodically and leveraging price-comparison platforms to identify the cheapest forecourts in their local area. 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 reduce overall fuel consumption. For those preparing for the Easter break, booking travel plans in advance and refuelling at lower-cost stations before setting out on extended journeys could aid in lessening the burden of elevated pump prices on holiday spending.
- Use fuel price comparison apps to locate the cheapest local forecourts before refuelling
- Combine journeys where possible 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 minimise overall expenditure
