Petrol prices have surpassed the 150p-per-litre mark for the first occasion in almost two years, intensifying the debate over whether fuel retailers are taking advantage of surging oil costs for profit. The typical cost for standard petrol exceeded the important mark on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The sharp increases, which have increased by around £10 to the price of topping up a standard family vehicle in just 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 categorically refuted accusations of profiteering, instead pointing to ministers for wrongly accusing at petrol station owners struggling with limited supply chains.
The 150p ceiling surpassed
The milestone marks a important juncture for British motorists, who have seen fuel costs climb steadily since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre tank, drivers are now dealing with expenses exceeding £82 for a full tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has characterised the breach of 150p as an unwanted milestone that will impact families already struggling with the rising cost of living. The increases are especially badly timed, arriving just as families commence planning their Easter getaways and summer holidays, when fuel demand typically reaches its highest levels.
Whilst the present 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, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s findings reveals that unleaded petrol has increased 17p per litre in the identical timeframe. With distribution networks already stretched and some forecourts reporting brief shutdowns caused by unusually high demand, the combination of elevated costs 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 increasing at an alarming rate
Retailers push back against official allegations
The growing row over fuel pricing has highlighted a widening divide between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances outside their remit. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid 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 genuinely tightened during the recent spike, leaving little room for profiteering even if operators were willing to do so. This finger-pointing reflects the public concern surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The CMA has announced it will intensify monitoring of the petrol market, signalling that regulatory scrutiny will increase. Yet fuel retailers contend this heightened oversight misses the core issue: they are responding to real supply limitations and wholesale price fluctuations, not creating artificial scarcity for financial gain. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and VAT, possibly gaining more from the price surge than fuel retailers. This remark has introduced an uncomfortable dimension to the discussion, implying that criticism from Westminster may overlook the government’s own economic stakes in higher fuel prices.
Asda’s defense and logistics challenges
As the UK’s second largest fuel supplier, Asda has found itself at the heart of the pricing row. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, stressing instead that fuel volumes have surged significantly, with demand substantially outstripping available supply. He conceded 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 resume service following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations highlight a important difference between profit-seeking and inventory control. When demand spikes dramatically, as has occurred in the wake of the regional tensions in the Middle East, retailers may find it challenging to maintain standard inventory levels in spite of their efforts. The Petrol Retailers Association corroborated this claim, admitting sporadic supply problems at “a handful of forecourts for one retailer” but asserting that supply across the UK is functioning smoothly. The association recommended drivers that there is no need to alter their usual buying patterns, suggesting that claims of stock problems are overstated or confined to specific areas.
Middle East conflicts driving wholesale prices
The marked increase in petrol and diesel prices has been firmly tied to escalating tensions in the Middle East, following combat actions between the US, Israel and Iran approximately a month ago. These political changes have produced substantial volatility in international energy markets, pushing wholesale costs upwards and compelling retailers to hand on rises to consumers on the forecourt. The RAC has recorded that unleaded petrol has risen by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts alert that additional geopolitical disruption could drive prices upward still, especially should supply routes through key passages become interrupted.
The timing of these cost rises has turned out to be especially difficult for British drivers approaching the Easter holidays. Families planning driving holidays face significantly higher petrol costs, with the cost of topping up a standard family vehicle now exceeding £82 for standard petrol—roughly £9.50 higher than just a month before. Diesel cars are affected to an even greater extent, 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,” highlighting the cumulative impact on household budgets 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 |
Crude oil volatility and political tensions
Global oil sectors remain highly sensitive to Middle Eastern events, with crude prices reflecting investor concerns about potential disruptions to supply. The attacks on Iran have heightened uncertainty about stability in the region, leading traders to require premium rates on petroleum contracts. Whilst current prices remain below the exceptional highs seen after Russia’s military incursion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts indicate that any further escalation in conflict could spark further price increases, especially if major transport corridors or production facilities experience disruption.
Government revenue and impact on consumers
As petrol prices continue their upward trajectory, 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 remains fixed regardless of the market price, meaning the government collects the same tax per litre no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this contradiction, suggesting 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 domestic spending limits to cover price increases throughout the wider economy. Elevated petrol prices flow through supply networks, impacting delivery costs for products and services. Small businesses relying on fuel-intensive operations face particular hardship, with transport firms and logistics providers absorbing significant cost increases. Consumer purchasing capacity diminishes as families redirect money toward petrol pumps rather than other purchases, potentially dampening economic growth. The RAC has advised drivers to schedule fuel purchases carefully and employ price-checking tools to identify the lowest-priced local fuel retailers, though these approaches provide limited assistance against the broader price surge.
- Government collects 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 non-essential spending falls as household budgets prioritise essential fuel purchases
What drivers ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has highlighted the value of planning journeys carefully and utilising price-comparison applications to identify the cheapest forecourts in their local region. Whilst such approaches provide only marginal gains, they can build substantially over time. Drivers ought to also think about whether non-essential journeys can be delayed or merged to minimise overall fuel expenditure. For those facing the Easter holidays, reserving travel arrangements early and refuelling at lower-cost stations before undertaking longer drives could help mitigate the impact of increased fuel costs on holiday budgets.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before filling up
- Combine journeys where possible and defer unnecessary journeys to reduce consumption
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Map your journey with care to maximise fuel efficiency and reduce total costs
