Petrol prices have surpassed the 150p-per-litre threshold for the first time in nearly two years, heightening the argument over whether fuel retailers are taking advantage of soaring oil costs for profit. The average price for unleaded petrol climbed above the important mark on Friday, whilst diesel surged past 177p, based on figures from the RAC. The notable jumps, which have pushed up by £10 to the cost of filling a standard family vehicle in only a month, follow geopolitical tensions in the region that erupted a month ago when the US and Israel carried out operations on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of profiteering, instead criticising ministers for unjustly blaming at petrol station owners struggling with constrained supply chains.
The 150p level exceeded
The milestone constitutes a significant moment for British motorists, who have seen fuel costs increase progressively since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre tank, drivers are now facing bills exceeding £82 for a complete tank of unleaded petrol—nearly £10 more than just four weeks earlier. The RAC has characterised the breach of 150p as an unwanted milestone that will impact families already grappling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families start planning their Easter getaways and summer holidays, when fuel demand conventionally surges.
Whilst the present prices remain below the peak levels witnessed after Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited concerns about affordability and accessibility. Diesel has struggled even more, climbing 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 identical timeframe. With supply chains already stretched and some petrol stations reporting brief shutdowns caused by exceptional demand, the combination of higher prices and potential availability issues risks worsen challenges for drivers throughout the nation.
- Unleaded fuel now 17p costlier per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since tensions began
- Filling a family car costs roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back on state claims
The growing row over fuel pricing has exposed a deepening split between the government and forecourt operators, who argue they are being wrongly targeted for circumstances they cannot influence. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers during the cost escalation. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and large retailers like Asda have insisted that margins have truly narrowed 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 directly impact household budgets and popular understanding of government competence.
The Competition and Markets Authority has announced it will strengthen monitoring of the petrol market, indicating that regulatory oversight will tighten. Yet retailers contend this heightened oversight overlooks the fundamental point: they are responding to genuine supply constraints and wholesale price movements, not engineering artificial scarcity for profit. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and value-added tax, potentially earning more from the price spike than fuel retailers. This observation has introduced an awkward element to the discussion, implying that criticism from Westminster 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 supplier, Asda has positioned itself at the heart of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, emphasising 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 shut down any petrol stations completely. The company expects affected pumps to resume service following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks underscore a important distinction between profiteering and supply management. When demand spikes dramatically, as has occurred following the regional tensions in the Middle East, retailers can find it difficult to maintain standard stock levels despite their best efforts. The Petrol Retailers Association supported this claim, admitting sporadic supply problems at “a handful of forecourts for one retailer” but maintaining that overall UK supply is functioning smoothly. The body counselled drivers that there is no need to change their normal purchasing habits, indicating that claims of stock problems have been inflated or localised.
Middle East tensions increasing wholesale costs
The marked increase in petrol and diesel prices has been firmly tied to mounting instability in the Middle East, in the wake of military strikes between the US, Israel and Iran roughly a month earlier. These political changes have generated considerable instability in worldwide petroleum markets, driving wholesale prices higher and obliging retailers to hand on rises to consumers on the forecourt. The RAC has recorded that unleaded petrol has increased by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that additional geopolitical disruption could push prices higher still, notably if transport corridors through key passages become blocked.
The timing of these price increases has turned out to be particularly painful for British drivers heading into the Easter holidays. Families planning driving holidays encounter significantly higher petrol costs, with the cost of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles are affected even more severely, with a complete fill-up now running to over £97, representing a £19 rise. The RAC’s Simon Williams described the breaching of the 150p-per-litre mark as an “unwelcome milestone,” underlining the combined effect on family finances during what should 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 |
Crude oil volatility and political tensions
Global oil markets remain highly sensitive to Middle Eastern events, with crude prices reflecting investor concerns about possible supply disruptions. The attacks on Iran have increased uncertainty 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 hit unprecedented levels—the trajectory is worrying. Energy analysts suggest that any additional escalation in hostilities could trigger further price increases, particularly if major transport corridors or production facilities face disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has been placed in an difficult situation. Whilst government officials have openly condemned 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 market price, meaning the government receives identical duty per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this inconsistency, suggesting that before accusing retailers of exploiting the crisis, the government should acknowledge its own windfall from higher fuel prices.
The broader economic implications transcend domestic spending limits to encompass inflation pressures across the entire economy. Increased fuel expenses pass through supply networks, influencing transport expenses for goods and services. SMEs reliant on fuel-heavy processes experience significant difficulty, with freight operators and delivery services facing major expense increases. Household purchasing power diminishes as families redirect money into fuel purchases rather than other purchases, possibly reducing GDP growth. The RAC has advised drivers to organise refuelling efficiently and use price-comparison applications to find the lowest-priced local fuel retailers, though such measures 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 throughout various sectors and industries
- Consumer discretionary spending declines as household budgets prioritise essential fuel purchases
What drivers ought to 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 stressed the significance of carefully planning journeys and leveraging price-comparison platforms to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such steps deliver only limited savings, they can build substantially over time. Drivers should also consider whether unnecessary trips can be deferred or consolidated to lower total fuel usage. For those preparing for the Easter break, arranging travel plans ahead of time and filling up at cheaper locations before embarking on longer trips could help mitigate the impact 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 defer non-essential trips to lower fuel usage
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Plan routes carefully to maximise fuel efficiency and minimise overall expenditure
