Petrol prices have exceeded the 150p-per-litre mark for the first time in almost two years, fuelling the argument over whether petrol stations are taking advantage of rocketing oil costs for financial gain. The typical cost for unleaded petrol climbed above the important mark on Friday, whilst diesel surged past 177p, based on figures from the RAC. The steep rises, which have pushed up by £10 to the cost of filling a standard family vehicle in only a month, follow military tensions in the region that broke out a month ago when the US and Israel conducted strikes on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of profiteering, instead criticising ministers for unjustly blaming at forecourt operators battling limited supply chains.
The 150p level exceeded
The milestone represents 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 fuel tank, drivers are now encountering costs exceeding £82 for a full tank of unleaded petrol—nearly £10 more than just four weeks earlier. The RAC has characterised the breach of 150p as an unwelcome milestone that will impact families already dealing with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families start planning their Easter trips and summer breaks, when fuel demand traditionally peaks.
Whilst the current prices remain below the peak levels recorded following Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived worries regarding affordability and accessibility. Diesel has fared even worse, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis shows that petrol has risen 17p per litre in the same period. With supply chains already stretched and some petrol stations reporting temporary pump closures caused by exceptional demand, the combination of higher prices and potential availability issues risks worsen challenges for drivers across the country.
- 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 approximately £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers challenge against official allegations
The intensifying 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 increasingly combative language, warning retailers against attempting to “rip off” customers amid the cost escalation. However, fuel retailers have responded sharply, 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 current increase, leaving minimal space for profiteering even if operators were inclined to do so. This mutual recrimination reflects the political importance surrounding fuel costs, which significantly affect household budgets and popular understanding of government competence.
The Competition and Markets Authority has stated it will intensify oversight of the petrol market, signalling that regulatory scrutiny will tighten. Yet fuel retailers contend this heightened oversight misses the fundamental point: they are responding to genuine supply constraints and wholesale price fluctuations, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and value-added tax, possibly gaining more from the price surge than retailers do. This observation has added an uncomfortable dimension to the debate, suggesting that government criticism may disregard the state’s own financial interests in higher fuel prices.
Asda’s defence and procurement challenges
As the UK’s second-biggest fuel supplier, Asda has positioned itself at the heart of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, emphasising 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 closed any forecourts entirely. The company anticipates the affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements highlight a key difference between profit-seeking and supply management. When demand spikes dramatically, as took place in the wake of the Middle East tensions, retailers can struggle to maintain normal inventory levels despite their best efforts. The Association of Petrol Retailers corroborated this claim, recognising isolated availability issues at “a handful of forecourts for one retailer” but asserting that supply across the UK is functioning smoothly. The association recommended drivers that there is no reason to modify their regular buying patterns, indicating that reports of shortages are overstated or localised.
Middle East conflicts driving wholesale costs
The marked increase in petrol and diesel prices has been closely connected to mounting instability in the Middle East, subsequent to armed operations between the US, Israel and Iran roughly a month earlier. These regional shifts have generated considerable instability in global oil markets, driving wholesale prices higher and compelling retailers to pass increases through to consumers on the forecourt. The RAC has noted that regular fuel has increased by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that ongoing tensions could force prices up still, particularly if supply routes through key passages become interrupted.
The timing of these cost rises has turned out to be particularly painful for British drivers heading into the Easter holidays. Families organising driving holidays encounter considerably elevated petrol costs, with the expense of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel cars are affected to an even greater extent, with a full tank 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,” underlining the combined effect on household budgets during what should 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 |
Crude oil fluctuations plus political tensions
Global oil sectors stay highly sensitive to Middle Eastern developments, with crude prices reflecting investor concerns about possible disruptions to supply. The attacks on Iran have heightened uncertainty about regional stability, prompting traders to demand risk premiums on petroleum contracts. Whilst current prices remain below the exceptional highs seen after Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts indicate that any further escalation in hostilities could spark further price increases, especially if major transport corridors or manufacturing plants experience disruption.
Government revenue and impact on consumers
As petrol prices keep rising steadily, the government has found itself in an awkward position. Whilst ministers have publicly criticised fuel retailers for possible price gouging, 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 no matter if petrol costs 120p or 150p. Asda’s chief executive Allan Leighton pointedly noted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own gains from elevated petrol costs.
The wider economic implications transcend individual household budgets to include inflation pressures across all economic sectors. Higher fuel costs feed through supply chains, influencing haulage expenses for goods and services. Smaller enterprises dependent on fuel-heavy processes experience significant difficulty, with haulage companies and courier services facing major expense increases. Consumer spending power falls as people channel spending toward petrol pumps rather than alternative spending, potentially dampening economic expansion. The RAC has recommended vehicle owners to schedule fuel purchases carefully and use price-comparison applications to find the cheapest local forecourts, though these approaches deliver modest help against the wider price increase.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures intensify as shipping expenses rise across all sectors and industries
- Consumer discretionary spending falls as family finances focus on necessary fuel spending
What motorists ought to 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 emphasised the importance of mapping out trips methodically and utilising price-comparison applications to locate the most affordable petrol stations in their local region. Whilst such measures offer only modest savings, they can accumulate meaningfully over time. Drivers may also wish to evaluate whether discretionary journeys can be delayed or merged to lower total fuel usage. For those facing the Easter holidays, booking travel plans in advance and refuelling at lower-cost stations before setting out on extended journeys could aid in lessening the burden of increased fuel costs on holiday spending.
- Use fuel price comparison apps to locate the most affordable nearby petrol stations before refuelling
- Combine journeys where possible and postpone non-essential trips to lower fuel usage
- Fill up at cheaper locations before setting out on extended Easter break trips
- Map your journey with care to improve fuel economy and reduce total costs
