Petrol prices have breached the 150p-per-litre milestone for the first time in nearly two years, fuelling the discussion over whether fuel retailers are taking advantage of rocketing oil costs for financial gain. The average price for standard petrol rose past the symbolic threshold on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The notable jumps, which have increased by around £10 to the price of topping up a typical family car in only a month, follow regional conflict in the Middle East that broke out a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has firmly rejected accusations of profiteering, instead blaming ministers for unfairly “pointing the finger” at forecourt operators battling limited supply chains.
The 150p threshold broken
The milestone constitutes a significant moment for British motorists, who have seen fuel costs rise consistently since the Middle East tensions began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now dealing with expenses exceeding £82 for a complete tank of unleaded petrol—nearly £10 more than just a month earlier. The RAC has described the breach of 150p as an unwanted milestone that will sting households already grappling with the rising cost of living. The increases are especially badly timed, arriving just as families begin planning their Easter trips and summer breaks, when demand for fuel conventionally surges.
Whilst the present prices stay below the record highs recorded after Russia’s invasion of Ukraine in 2022, the swift increase has reignited concerns about affordability and accessibility. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s findings shows that petrol has risen 17p per litre in the same period. With supply chains already stretched and some forecourts reporting brief shutdowns caused by exceptional demand, the combination of elevated costs and possible supply problems risks worsen challenges 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 up a family car costs roughly £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back on state claims
The intensifying row over fuel pricing has highlighted a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances outside their remit. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers during the pricing spike. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and leading operators like Asda have insisted that margins have genuinely tightened during the latest surge, leaving scant scope for profiteering even if operators were inclined to do so. This mutual recrimination reflects the public concern surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The Competition and Markets Authority has announced it will strengthen monitoring of the fuel sector, indicating that regulatory oversight will tighten. Yet fuel retailers argue this increased scrutiny misses the core issue: they are reacting to genuine supply constraints and wholesale price movements, not engineering false shortages 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 remark has added an awkward element to the discussion, suggesting that government criticism may overlook the state’s own economic stakes in elevated fuel costs.
Asda’s defense and logistics difficulties
As the UK’s second-biggest fuel supplier, Asda has positioned itself at the heart 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 far exceeding available supply. He conceded that a small number of pumps have temporarily gone out of service due to exceptional customer demand, but insisted 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 remarks underscore a important distinction between profiteering and inventory control. When demand increases sharply, as has occurred after the Middle East tensions, retailers can find it difficult to keep up stock levels in spite of their efforts. The Petrol Retailers Association corroborated this claim, recognising sporadic supply problems at “a handful of forecourts for one retailer” but insisting that the UK’s overall supply is operating as usual. The association counselled drivers that there is no reason to modify their regular purchasing habits, suggesting that reports of shortages have been exaggerated or localised.
Middle Eastern tensions increasing bulk pricing
The marked increase in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, following combat actions between the US, Israel and Iran about a month prior. These geopolitical developments have generated considerable instability in international energy markets, forcing wholesale costs up and compelling retailers to transfer costs to consumers at the pump. The RAC has recorded that regular fuel has risen by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that further regional instability could push prices higher still, notably if distribution channels through essential bottlenecks become disrupted.
The scheduling of these cost rises has turned out to be especially difficult for British motorists approaching the Easter holidays. Families planning driving holidays encounter considerably elevated petrol costs, with the cost of filling a typical family car now surpassing £82 for standard petrol—roughly £9.50 higher than just a month before. Diesel cars are impacted even more severely, with a complete fill-up now running to over £97, constituting a £19 increase. The RAC’s Simon Williams described the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” underlining 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 fluctuations plus geopolitical factors
Global oil sectors stay highly sensitive to Middle Eastern events, with crude prices mirroring investor worries about potential disruptions to supply. The attacks on Iran have heightened doubt about regional stability, prompting traders to require risk premiums on petroleum agreements. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is concerning. Energy analysts indicate that any further escalation in hostilities could trigger additional price spikes, especially if major shipping routes or manufacturing plants experience disruption.
Public finances and consumer impact
As petrol prices keep rising steadily, the government has found itself in an difficult situation. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has quietly benefited substantially from the surge in pump prices. Excise duty on fuel stays constant regardless of the wholesale cost, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this contradiction, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own gains from elevated petrol costs.
The more extensive economic effects extend beyond domestic spending limits to encompass inflationary forces across the entire economy. Higher fuel costs pass through supply networks, affecting transport expenses for commodities and services. Smaller enterprises reliant on high-fuel activities face particular hardship, with transport firms and courier services facing major expense increases. Consumer purchasing capacity diminishes as families redirect money to fuel stations rather than different expenditures, possibly reducing GDP growth. The RAC has counselled motorists to plan refuelling strategically and use price-comparison applications to identify the most affordable nearby petrol stations, though these steps deliver modest help against the overall cost escalation.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures intensify as transport costs rise across all sectors and industries
- Consumer discretionary spending declines as household budgets focus on essential fuel purchases
What drivers should do at present
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to take a more calculated approach to refuelling. The RAC has highlighted the value of carefully planning journeys and utilising price-comparison applications to locate the most affordable petrol stations in their local region. Whilst such approaches provide only marginal gains, they can build substantially over time. Drivers may also wish to evaluate whether discretionary journeys can be postponed or combined to lower total fuel usage. For those facing the Easter holidays, reserving travel arrangements early and refuelling at lower-cost stations before undertaking longer drives could aid in lessening the burden of higher petrol rates on holiday budgets.
- Use fuel price comparison apps to locate the cheapest local forecourts before filling up
- Combine journeys where feasible and postpone unnecessary journeys to lower fuel usage
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Map your journey with care to maximise fuel efficiency and minimise overall expenditure
