Petrol prices have breached the 150p-per-litre milestone for the first occasion in nearly two years, intensifying the discussion over whether fuel retailers are taking advantage of soaring oil costs for profit. The average price for unleaded petrol exceeded the symbolic threshold on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The steep rises, which have pushed up by £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 chief executive Allan Leighton has categorically refuted accusations of profiteering, instead blaming ministers for unjustly blaming at petrol station owners battling restricted supply networks.
The 150p barrier breached
The milestone marks a significant moment for British motorists, who have watched fuel costs rise consistently since the regional tensions in the Middle East 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 a month earlier. The RAC has termed the breach of 150p as an unwanted milestone that will sting households already grappling with the rising cost of living. The increases are remarkably poorly timed, arriving just as families begin planning their Easter getaways and summer holidays, when fuel demand traditionally peaks.
Whilst the present prices stay below the record highs witnessed following Russia’s attack on Ukraine in 2022, the swift increase has revived concerns about affordability and accessibility. Diesel has struggled even more, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis reveals that unleaded petrol has increased 17p per litre in the same period. With distribution networks already strained and some petrol stations experiencing temporary pump closures caused by unusually high demand, the combination of higher prices and possible supply problems threatens to worsen challenges for drivers throughout the nation.
- Unleaded petrol now 17p more expensive per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since tensions began
- Filling a family car costs approximately £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retailers challenge against official allegations
The intensifying 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 increasingly combative language, warning retailers against attempting to “rip off” customers throughout the pricing spike. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and self-defeating. 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 inclined to do so. This mutual recrimination reflects the public concern surrounding fuel costs, which significantly affect household budgets and consumer views of government competence.
The CMA has announced it will strengthen oversight of the petrol market, signalling that regulatory oversight will tighten. Yet fuel retailers contend this heightened oversight misses the core issue: they are responding to real supply limitations and wholesale price movements, not engineering artificial scarcity for profit. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and VAT, potentially earning more from the price surge than retailers do. This remark has introduced an awkward element to the discussion, implying that criticism from Westminster may overlook the state’s own financial interests in elevated fuel costs.
Asda’s defence and procurement difficulties
As the UK’s second largest fuel retailer, Asda has found itself at the centre of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, stressing 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 unusually high customer demand, but maintained that Asda has not closed any forecourts entirely. The company expects affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s observations emphasise a key separation between profiteering and inventory control. When demand surges unexpectedly, as has occurred in the wake of the regional tensions in the Middle East, retailers can find it difficult to maintain normal stock levels despite their best efforts. The Petrol Retailers Association supported this account, admitting sporadic supply problems at “a small number of forecourts for one retailer” but asserting that supply across the UK is functioning smoothly. The body recommended drivers that there is no requirement to change their normal shopping behaviour, indicating that reports of shortages have been inflated or confined to specific areas.
Middle East tensions pushing wholesale costs
The sharp rise in petrol and diesel prices has been closely connected to rising conflict in the Middle East, following military strikes between the US, Israel and Iran about a month prior. These regional shifts have produced substantial volatility in international energy markets, driving wholesale prices higher and forcing retailers to transfer costs to consumers on the forecourt. The RAC has documented that unleaded petrol has climbed by 17p per litre since the fighting commenced, whilst diesel has risen even more sharply by 35p per litre. Analysts caution that further regional instability could drive prices upward still, especially should distribution channels through essential bottlenecks become disrupted.
The scheduling of these price increases has turned out to be especially difficult for British motorists approaching the Easter holidays. Families planning driving holidays encounter significantly higher fuel bills, with the cost of topping up a standard family vehicle now surpassing £82 for standard petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles are impacted to an even greater extent, with a complete fill-up now costing over £97, representing a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the combined effect on family finances during what should 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 |
Oil market volatility and political tensions
Global oil markets remain highly responsive 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 risk premiums on petroleum agreements. Whilst current prices stay below the exceptional highs witnessed following Russia’s military incursion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is concerning. Energy analysts suggest that any further escalation in hostilities could spark additional price spikes, particularly if major transport corridors or production facilities experience disruption.
Public finances and impact on consumers
As petrol prices keep rising steadily, the government has found itself in an difficult situation. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the surge in pump prices. 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 pointedly noted this contradiction, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own windfall from higher fuel prices.
The wider economic implications extend beyond personal family finances to include price increases across the entire economy. Increased fuel expenses flow through supply networks, influencing haulage expenses for products and services. Smaller enterprises relying on fuel-heavy processes face particular hardship, with freight operators and logistics providers bearing substantial cost rises. Household purchasing power diminishes as people channel spending toward petrol pumps rather than different expenditures, potentially dampening economic expansion. The RAC has advised vehicle owners to organise refuelling efficiently and use price-comparison applications to find the lowest-priced local fuel retailers, though these steps provide limited assistance against the wider price increase.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise across all sectors and industries
- Consumer non-essential spending falls as family finances prioritise essential fuel purchases
What motorists should do now
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 emphasised the importance of carefully planning journeys and utilising price-comparison applications to identify the cheapest forecourts in their local region. Whilst such steps deliver only limited savings, they can build substantially over time. Drivers may also wish to evaluate whether discretionary journeys can be deferred or consolidated to minimise overall fuel expenditure. 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 holiday spending.
- Use fuel price comparison apps to locate the most affordable nearby petrol stations before filling up
- Combine journeys where feasible and defer non-essential trips to reduce consumption
- Fill up at more affordable stations before embarking on extended Easter break trips
- Plan routes carefully to improve fuel economy and reduce total costs