Petrol prices have breached the 150p-per-litre mark for the first occasion in almost two years, intensifying the debate over whether fuel retailers are taking advantage of soaring oil costs for profit. The typical cost for standard petrol climbed above the important mark on Friday, whilst diesel climbed above 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 just a month, follow military tensions in the Middle East that flared up a month ago when the US and Israel conducted strikes on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of excessive profit-taking, instead criticising ministers for unjustly blaming at petrol station owners facing limited supply chains.
The 150p threshold broken
The milestone marks a significant moment for British motorists, who have seen fuel costs climb steadily 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 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 sting households already dealing with the rising cost of living. The increases are especially badly timed, arriving just as families begin planning their Easter getaways and summer holidays, when fuel demand traditionally peaks.
Whilst the current prices remain below the peak levels witnessed after Russia’s invasion of 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 standing at over 177p. The RAC’s analysis shows that petrol has increased 17p per litre in the same period. With distribution networks already strained and some forecourts reporting temporary pump closures due to unusually high demand, the mix of elevated costs and potential availability issues threatens to compound difficulties for drivers across the country.
- Unleaded petrol now 17p more expensive per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since the tensions started
- Filling a family car costs roughly £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers challenge against government accusations
The intensifying row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid the price surge. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and large retailers like Asda have insisted that margins have truly narrowed during the current increase, leaving scant scope for profiteering even if operators were inclined to do so. This blame-shifting reflects the political importance surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The Competition and Markets Authority has announced it will intensify oversight of the fuel sector, indicating that regulatory scrutiny will tighten. Yet retailers contend this heightened oversight misses the fundamental point: they are responding to real supply limitations and wholesale price fluctuations, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton highlighted that the government itself benefits substantially from fuel duty and VAT, possibly gaining more from the price spike than retailers do. This remark has added an uncomfortable dimension to the debate, suggesting that government criticism may overlook the government’s own financial interests in elevated fuel costs.
Asda’s defence and supply difficulties
As the UK’s second largest fuel retailer, Asda has found 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 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 shut down any petrol stations completely. The company anticipates the affected pumps to return to operation following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements highlight a critical difference between profiteering and supply management. When demand spikes dramatically, as has happened after the regional tensions in the Middle East, retailers may find it challenging to maintain standard stock levels despite their best efforts. The Association of Petrol Retailers supported this narrative, recognising sporadic supply problems at “a small number of forecourts for one retailer” but insisting that the UK’s overall supply is flowing normally. The association advised drivers that there is no need to change their normal shopping behaviour, implying that claims of stock problems have been inflated or confined to specific areas.
Middle East conflicts increasing bulk pricing
The notable surge in petrol and diesel prices has been directly linked 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 created significant uncertainty in worldwide petroleum markets, driving wholesale prices higher and forcing retailers to hand on rises to consumers at the pump. The RAC has documented that unleaded petrol has risen by 17p per litre since hostilities started, whilst diesel has increased even more dramatically by 35p per litre. Analysts alert that further regional instability could force prices up still, especially should supply routes through critical chokepoints become blocked.
The timing of these price increases has turned out to be especially difficult for British drivers heading into the Easter break. Families organising driving holidays encounter considerably elevated fuel bills, with the expense of filling a typical family car now surpassing £82 for standard petrol—roughly £9.50 higher than just a month before. Diesel-powered vehicles are impacted even more severely, with a complete fill-up now running to over £97, representing a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre mark as an “unwelcome milestone,” underlining 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 volatility and geopolitical factors
Global oil sectors stay highly sensitive to Middle Eastern events, with crude prices reflecting investor worries about potential disruptions to supply. The attacks on Iran have increased uncertainty about regional stability, prompting traders to require risk premiums on petroleum contracts. Whilst current prices remain below the extraordinary peaks witnessed following Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts suggest that any further escalation in hostilities could spark further price increases, especially if major transport corridors or manufacturing plants face disruption.
Government revenue and impact on consumers
As petrol prices maintain their upward climb, the government has found itself in an difficult situation. 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 remains fixed regardless of the market price, meaning the government receives identical duty per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this inconsistency, suggesting that before accusing retailers of exploiting the crisis, the government ought to recognise its own gains from elevated petrol costs.
The wider economic effects extend beyond personal family finances to cover inflationary forces throughout the wider economy. Increased fuel expenses pass through supply networks, influencing delivery costs for goods and services. Smaller enterprises dependent on high-fuel activities face particular hardship, with freight operators and delivery services absorbing significant cost increases. Household purchasing power diminishes as households allocate funds toward petrol pumps rather than different expenditures, possibly reducing economic expansion. The RAC has recommended drivers to organise refuelling efficiently and use price-comparison applications to identify the most affordable nearby petrol stations, though these approaches provide limited assistance against the wider price increase.
- Government receives fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures increase as shipping expenses rise throughout various sectors and industries
- Consumer non-essential spending falls as family finances focus on necessary fuel spending
What drivers should do at present
With petrol prices displaying no immediate prospect of falling, motorists are being advised to adopt a more strategic approach to refuelling. The RAC has highlighted the value of mapping out trips methodically and leveraging price-comparison platforms to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such measures offer only modest savings, they can build substantially over time. Drivers ought to also think about whether non-essential journeys can be delayed or merged to lower total fuel usage. For those dealing with the Easter period, reserving travel arrangements early and refuelling at lower-cost stations before embarking on longer trips could aid in lessening the burden of increased fuel costs on vacation finances.
- Use fuel price comparison apps to locate the most affordable nearby petrol stations before filling up
- Merge trips where feasible and defer unnecessary journeys 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
