Petrol prices have exceeded the 150p-per-litre threshold for the first occasion in nearly two years, intensifying the discussion over whether fuel retailers are capitalising on surging oil costs for profit. The average price for standard petrol exceeded the important mark on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The sharp increases, which have added nearly £10 to the price of topping up a typical family car in just 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 executive chairman Allan Leighton has strongly denied accusations of excessive profit-taking, instead blaming ministers for wrongly accusing at forecourt operators struggling with limited supply chains.
The 150p level exceeded
The milestone represents a significant moment 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 tank, drivers are now encountering costs exceeding £82 for a complete tank of unleaded petrol—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 particularly poorly timed, arriving just as families begin planning their Easter trips and summer breaks, when demand for fuel conventionally surges.
Whilst the current prices remain below the record highs witnessed after Russia’s attack on Ukraine in 2022, the swift increase has reignited concerns about cost and availability. Diesel has struggled even more, climbing 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis shows that unleaded petrol has risen 17p per litre in the identical timeframe. With supply chains already stretched and some forecourts experiencing temporary pump closures caused by exceptional demand, the combination of elevated costs and potential availability issues threatens to worsen challenges for drivers across the country.
- Unleaded fuel now 17p more expensive per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since tensions began
- Filling a family car costs approximately £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retailers challenge on state claims
The growing row over fuel pricing has exposed a growing rift between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances they cannot influence. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers throughout 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 genuinely tightened during the latest surge, leaving minimal space for profiteering even if operators were disposed to act. This finger-pointing reflects the public concern surrounding fuel costs, which materially influence household budgets and consumer views of government competence.
The Competition and Markets Authority has announced it will intensify monitoring of the petrol market, indicating that regulatory scrutiny will tighten. Yet fuel retailers contend this increased scrutiny overlooks the fundamental point: they are reacting to genuine supply constraints and wholesale price fluctuations, not creating false shortages for financial gain. Asda’s Allan Leighton pointed out that the state profits significantly from fuel duty and value-added tax, possibly gaining more from the price spike than retailers do. This observation has added an awkward element to the discussion, suggesting that criticism from Westminster may overlook the government’s own financial interests in higher fuel prices.
Asda’s defence and procurement challenges
As the UK’s second largest fuel retailer, Asda has positioned itself at the centre of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have increased substantially, with demand substantially outstripping available supply. He acknowledged that a small number of pumps have temporarily gone out of service due to unusually high customer demand, but insisted that Asda has not shut down any petrol stations completely. The company anticipates the affected pumps to resume service following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements emphasise a critical distinction between profit-seeking and inventory control. When demand spikes dramatically, as has happened after the regional tensions in the Middle East, retailers can struggle to maintain normal stock levels despite their best efforts. The Association of Petrol Retailers backed up this narrative, admitting isolated availability issues at “a handful of forecourts for one retailer” but asserting that overall UK supply is flowing normally. The association recommended drivers that there is no need to modify their regular purchasing habits, implying that accounts of supply issues have been inflated or confined to specific areas.
Middle Eastern conflicts driving bulk pricing
The sharp rise in petrol and diesel prices has been directly linked to mounting instability in the Middle East, subsequent to combat actions between the US, Israel and Iran about a month prior. These regional shifts have generated considerable instability in international energy markets, forcing wholesale costs up and obliging retailers to hand on rises to consumers at fuel stations. The RAC has documented that standard petrol has climbed by 17p per litre since the conflict began, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that further regional instability could force prices up still, notably if supply routes through key passages become disrupted.
The scheduling of these cost rises has proven particularly painful for British drivers approaching the Easter holidays. Families organising driving holidays encounter significantly higher fuel bills, with the expense of filling a typical family car now surpassing £82 for standard petrol—roughly £9.50 more than just a month earlier. Diesel cars are affected even more severely, with a full tank now running to over £97, constituting a £19 rise. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the combined effect 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 |
Crude oil fluctuations plus political tensions
Global oil markets stay highly sensitive to Middle Eastern events, with crude prices mirroring investor concerns about possible supply disruptions. The attacks on Iran have increased uncertainty 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 invasion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is concerning. Energy analysts suggest that any further escalation in hostilities could spark further price increases, especially if major transport corridors or manufacturing plants experience disruption.
Public finances and impact on consumers
As petrol prices continue their upward trajectory, the government has found itself in an awkward position. 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 remains fixed regardless of the wholesale cost, meaning the government receives identical duty per litre regardless of whether 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 should acknowledge its own windfall from higher fuel prices.
The more extensive financial consequences transcend domestic spending limits to cover inflation pressures across the entire economy. Elevated petrol prices flow through distribution networks, influencing transport expenses for commodities and services. Small businesses reliant on fuel-heavy processes encounter considerable challenges, with freight operators and courier services bearing substantial cost rises. Household purchasing power falls as households allocate funds into fuel purchases rather than alternative spending, potentially dampening GDP growth. The RAC has advised vehicle owners to plan refuelling strategically and use price-comparison applications to identify the lowest-priced local fuel retailers, though these approaches offer only marginal relief against the overall cost escalation.
- Government receives fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as shipping expenses rise across all sectors and industries
- Consumer non-essential spending falls as family finances focus on necessary fuel spending
What motorists ought to do at present
With petrol prices showing no immediate signs of retreating, motorists are being encouraged to adopt a more strategic approach to refuelling. The RAC has highlighted the value of planning journeys carefully and leveraging price-comparison platforms to identify the cheapest forecourts in their surrounding neighbourhood. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers should also consider whether discretionary journeys can be delayed or merged to minimise overall fuel expenditure. For those dealing with the Easter period, booking travel plans in advance and topping up at budget-friendly forecourts before embarking on longer trips could assist in reducing the effect of higher petrol rates on holiday budgets.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before refuelling
- Combine journeys where feasible and defer unnecessary journeys to lower fuel usage
- Fill up at more affordable stations before setting out on extended Easter break trips
- Plan routes carefully to maximise fuel efficiency and reduce total costs
