Petrol prices have exceeded the 150p-per-litre threshold for the first occasion in nearly two years, fuelling the argument over whether petrol stations are taking advantage of rocketing oil costs for financial gain. The average price for standard petrol rose past the important mark on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The notable jumps, which have added nearly £10 to the price of topping up a typical family car in only a month, follow geopolitical tensions in the Middle East that erupted a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has strongly denied accusations of profiteering, instead blaming ministers for wrongly accusing at forecourt operators battling restricted supply networks.
The 150p barrier breached
The milestone marks a important juncture for British motorists, who have watched fuel costs rise consistently since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre tank, drivers are now dealing with expenses exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has characterised the breach of 150p as an unwelcome milestone that will affect households already grappling with the rising cost of living. The increases are particularly poorly timed, arriving just as families commence planning their Easter getaways and summer holidays, when demand for fuel typically reaches its highest levels.
Whilst the current prices stay below the record highs witnessed after Russia’s invasion of Ukraine in 2022, the swift increase has revived concerns about cost and availability. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s findings reveals that petrol has increased 17p per litre in the identical timeframe. With supply chains already stretched and some petrol stations reporting temporary pump closures caused by exceptional demand, the combination of higher prices and possible supply problems risks compound difficulties for motorists throughout the nation.
- Unleaded petrol now 17p costlier per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since the tensions started
- Filling a family car costs roughly £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retailers push back against government accusations
The escalating row over fuel pricing has revealed a widening divide between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances they cannot influence. 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 unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have actually compressed during the recent spike, leaving minimal space for profiteering even if operators were willing to do so. This finger-pointing reflects the political sensitivity surrounding fuel costs, which significantly affect household budgets and consumer views of government competence.
The Competition and Markets Authority has announced it will strengthen oversight of the fuel sector, signalling that regulatory scrutiny will tighten. Yet fuel retailers contend this increased scrutiny misses the fundamental point: they are reacting to real supply limitations and wholesale price movements, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton pointed out that the government itself profits significantly from fuel duty and VAT, possibly gaining more from the price surge than retailers do. This remark has introduced an uncomfortable dimension to the discussion, implying that criticism from Westminster may overlook the state’s own economic stakes in elevated fuel costs.
Asda’s defence and procurement challenges
As the UK’s second largest fuel retailer, Asda has positioned itself at the centre of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have surged significantly, with demand substantially outstripping available supply. He acknowledged that a small number of pumps have temporarily gone out of service due to exceptional customer demand, but maintained 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 observations emphasise a key difference between profiteering and inventory control. When demand spikes dramatically, as took place after the Middle East tensions, retailers may find it challenging to maintain normal inventory levels in spite of their efforts. The Petrol Retailers Association backed up this claim, recognising sporadic supply problems at “a handful of forecourts for one retailer” but asserting that supply across the UK is operating as usual. The body recommended drivers that there is no reason to change their normal shopping behaviour, implying that claims of stock problems have been inflated or confined to specific areas.
Middle Eastern tensions increasing bulk pricing
The sharp rise in petrol and diesel prices has been closely connected to mounting instability in the Middle East, subsequent to combat actions between the US, Israel and Iran roughly a month earlier. These political changes have created significant uncertainty in worldwide petroleum markets, pushing wholesale costs upwards and obliging retailers to pass increases through to consumers on the forecourt. The RAC has noted that regular fuel has climbed by 17p per litre since hostilities started, whilst diesel has increased even more dramatically by 35p per litre. Analysts warn that further regional instability could drive prices upward still, particularly if supply routes through key passages become disrupted.
The timing of these cost rises has turned out to be particularly painful for British drivers heading into the Easter holidays. Families organising road trips face significantly higher fuel bills, with the expense of topping up a standard family vehicle now surpassing £82 for unleaded petrol—roughly £9.50 more than just a month before. Diesel cars are affected even more severely, with a complete fill-up now costing over £97, representing a £19 increase. 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 ought to 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 fluctuations plus political tensions
Global oil sectors stay highly responsive to Middle Eastern events, with crude prices mirroring investor concerns about potential disruptions to supply. The attacks on Iran have heightened doubt about stability in the region, leading traders to require premium rates on petroleum agreements. Whilst current prices remain below the extraordinary peaks seen after Russia’s military incursion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts suggest that any additional escalation in conflict could spark additional price spikes, especially if major transport corridors or manufacturing plants face disruption.
Public finances and consumer impact
As petrol prices continue their upward trajectory, the government has found itself in an awkward position. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has quietly benefited substantially from the surge in pump prices. Excise duty on fuel remains fixed regardless of the wholesale cost, meaning the government receives identical duty per litre no matter if 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 wider economic implications go further than domestic spending limits to include inflation pressures throughout the wider economy. Higher fuel costs feed through supply networks, influencing delivery costs for goods and services. Smaller enterprises reliant on fuel-intensive operations encounter considerable challenges, with haulage companies and delivery services absorbing significant cost increases. Consumer purchasing capacity declines as families redirect money to fuel stations rather than other purchases, possibly reducing economic growth. The RAC has advised motorists to plan refuelling strategically and utilise fuel-price apps to identify the cheapest local forecourts, though such measures offer only marginal relief against the overall cost escalation.
- Government receives fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise across all sectors and industries
- Consumer discretionary spending declines as family finances prioritise essential fuel purchases
What drivers ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being urged to implement a more planned strategy to refuelling. The RAC has stressed the significance of carefully planning journeys and utilising price-comparison applications to identify the cheapest forecourts in their local region. Whilst such measures offer only modest savings, they can build substantially over time. Drivers may also wish to evaluate whether non-essential journeys can be postponed or combined to reduce overall fuel consumption. For those facing the Easter holidays, booking travel plans in advance and filling up at cheaper locations before setting out on extended journeys could aid in lessening the burden of higher petrol rates on holiday budgets.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before refuelling
- Merge trips where feasible and postpone non-essential trips to reduce consumption
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Plan routes carefully to improve fuel economy and minimise overall expenditure
