Petrol prices have breached the 150p-per-litre mark for the first occasion in nearly two years, heightening the debate over whether petrol stations are capitalising on surging oil costs for profit. The average price for unleaded petrol exceeded the important mark on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The sharp increases, which have added nearly £10 to the cost of filling a standard family vehicle in just a month, follow military tensions in the Middle East that erupted a month ago when the US and Israel carried out operations on Iran. Asda’s chief executive Allan Leighton has firmly rejected accusations of profiteering, instead blaming ministers for unfairly “pointing the finger” at petrol station owners facing restricted supply networks.
The 150p barrier breached
The milestone constitutes a important juncture for British motorists, who have seen fuel costs climb steadily since the regional tensions in the Middle East 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 fuel—nearly £10 more than just a month earlier. The RAC has described the breach of 150p as an unwanted milestone that will affect households already struggling 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 typically reaches its highest levels.
Whilst the present prices remain below the peak levels recorded following Russia’s attack on Ukraine in 2022, the swift increase has reignited concerns about cost and availability. Diesel has fared even worse, climbing 35p per litre since the conflict began and now standing at over 177p. The RAC’s analysis reveals that petrol has risen 17p per litre in the same period. With distribution networks already strained and some petrol stations experiencing temporary pump closures caused by exceptional demand, the mix of higher prices and potential availability issues threatens to 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 up a family car costs approximately £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back against government accusations
The escalating row over fuel pricing has exposed a deepening split between the government and forecourt operators, who argue they are being wrongly targeted for circumstances beyond their control. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers during the price surge. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and major chains like Asda have insisted that margins have genuinely tightened during the latest surge, leaving little room for profiteering even if operators were disposed to act. This blame-shifting reflects the political sensitivity surrounding fuel costs, which significantly affect household budgets and consumer views of government competence.
The CMA has stated it will strengthen oversight of the petrol market, signalling that regulatory oversight will tighten. Yet fuel retailers argue this increased scrutiny misses the fundamental point: they are reacting to genuine supply constraints and wholesale price fluctuations, not engineering false shortages for profit. Asda’s Allan Leighton highlighted that the state benefits substantially from fuel duty and VAT, possibly gaining more from the price surge than fuel retailers. This remark has introduced an awkward element to the debate, suggesting that government criticism may disregard the government’s own economic stakes in higher fuel prices.
Asda’s defence and procurement challenges
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 exploiting the crisis, stressing instead that fuel volumes have surged significantly, 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 shut down any petrol stations completely. The company anticipates the affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks highlight a key difference between profiteering and supply management. When demand increases sharply, as has occurred after the regional tensions in the Middle East, retailers may find it challenging to maintain normal stock levels despite their best efforts. The Association of Petrol Retailers supported this claim, admitting isolated availability issues at “a handful of forecourts for one retailer” but insisting that supply across the UK is operating as usual. The body counselled drivers that there is no need to alter their usual purchasing habits, implying that reports of shortages have been inflated or isolated.
Middle Eastern conflicts pushing wholesale prices
The sharp rise in petrol and diesel prices has been closely connected to escalating tensions in the Middle East, in the wake of military strikes 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 forcing retailers to hand on rises to consumers on the forecourt. The RAC has recorded that unleaded petrol has risen by 17p per litre since the fighting commenced, whilst diesel has climbed even more steeply by 35p per litre. Analysts warn that further regional instability could drive prices upward still, particularly if supply routes through key passages become interrupted.
The timing of these cost rises has proven particularly painful for British motorists heading into the Easter break. Families organising road trips encounter significantly higher fuel bills, with the expense of topping up a standard family vehicle now surpassing £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel-powered vehicles are impacted to an even greater extent, with a full tank now costing over £97, representing a £19 rise. 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 ought to 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 sectors stay highly sensitive to Middle Eastern events, with crude prices mirroring investor concerns about possible disruptions to supply. The attacks on Iran have heightened uncertainty about stability in the region, leading traders to require premium rates on petroleum contracts. Whilst current prices stay below the exceptional highs witnessed following Russia’s military incursion of Ukraine—when wholesale costs reached record highs—the trajectory is worrying. Energy analysts suggest that any additional escalation in hostilities could spark additional price spikes, particularly if major transport corridors or manufacturing plants experience disruption.
Government revenue and consumer impact
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 no matter if petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own gains from elevated petrol costs.
The more extensive financial consequences go further than personal family finances to encompass price increases throughout the wider economy. Elevated petrol prices feed through supply networks, influencing transport expenses for goods and services. Smaller enterprises reliant on fuel-heavy processes face particular hardship, with transport firms and courier services absorbing significant cost increases. Consumer spending power falls as people channel spending toward petrol pumps rather than different expenditures, potentially dampening economic growth. The RAC has advised drivers to organise refuelling efficiently and employ price-checking tools to locate the lowest-priced local fuel retailers, though such measures provide limited assistance against the wider price increase.
- Government collects set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending falls as family finances prioritise essential fuel purchases
What motorists should do at present
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has stressed the significance of carefully planning journeys and utilising price-comparison applications to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such approaches provide only marginal gains, they can build substantially over time. Drivers should also consider whether non-essential journeys can be delayed or merged to minimise overall fuel expenditure. For those facing the Easter holidays, reserving travel arrangements early and filling up at cheaper locations before embarking on longer trips could assist in reducing the effect of higher petrol rates on holiday budgets.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before refuelling
- Merge trips where feasible and defer non-essential trips to lower fuel usage
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Plan routes carefully to improve fuel economy and reduce total costs
