Petrol prices have exceeded the 150p-per-litre mark for the first time in nearly two years, fuelling the debate over whether petrol stations are capitalising on surging oil costs for profit. The average price for standard petrol exceeded the important mark on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The notable jumps, which have added nearly £10 to the cost of filling a typical family car in only a month, follow regional conflict in the region that erupted a month ago when the US and Israel conducted strikes on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of excessive profit-taking, instead pointing to ministers for wrongly accusing at forecourt operators facing limited supply chains.
The 150p threshold broken
The milestone represents a important juncture 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 encountering costs exceeding £82 for a full tank of unleaded fuel—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 struggling 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 fuel demand traditionally peaks.
Whilst the current prices stay below the record highs recorded after Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited concerns about affordability and accessibility. Diesel has fared even worse, rising 35p per litre since the conflict began and now standing at over 177p. The RAC’s analysis shows that unleaded petrol has increased 17p per litre in the identical timeframe. With supply chains already strained and some forecourts reporting temporary pump closures due to exceptional demand, the combination of higher prices and potential availability issues risks worsen challenges for drivers throughout the nation.
- Unleaded fuel 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 roughly £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers push back on government accusations
The escalating row over fuel pricing has highlighted a widening divide 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 during the pricing spike. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and leading operators like Asda have insisted that margins have actually compressed during the latest surge, leaving scant scope for profiteering even if operators were inclined to do so. This finger-pointing reflects the political sensitivity surrounding fuel costs, which materially influence household budgets and popular understanding of government competence.
The Competition and Markets Authority has announced it will intensify monitoring of the fuel sector, signalling that regulatory scrutiny will tighten. Yet fuel retailers contend this heightened oversight misses the core issue: they are reacting to genuine supply constraints and wholesale price fluctuations, not creating false shortages for financial gain. Asda’s Allan Leighton highlighted that the government itself benefits substantially from fuel duty and VAT, potentially earning more from the price surge than fuel retailers. This remark has introduced an awkward element to the debate, suggesting that criticism from Westminster may overlook the government’s own financial interests in higher fuel prices.
Asda’s defence and supply pressures
As the UK’s second-biggest fuel supplier, Asda has positioned itself at the centre of the pricing row. 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 briefly stopped operating 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 next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks emphasise a critical separation between profit-seeking and inventory control. When demand surges unexpectedly, as has occurred after the regional tensions in the Middle East, retailers can struggle to maintain standard stock levels in spite of their efforts. The Association of Petrol Retailers backed up this account, admitting sporadic supply problems at “a handful of forecourts for one retailer” but asserting that overall UK supply is flowing normally. The association counselled drivers that there is no requirement to alter their usual shopping behaviour, suggesting that accounts of supply issues are overstated or localised.
Middle East instability pushing wholesale costs
The marked increase in petrol and diesel prices has been closely connected to rising conflict in the Middle East, following armed operations between the US, Israel and Iran roughly a month earlier. These geopolitical developments have generated considerable instability in global oil markets, pushing wholesale costs upwards and forcing retailers to transfer costs to consumers at the pump. The RAC has noted that regular fuel has risen by 17p per litre since the fighting commenced, whilst diesel has increased even more dramatically by 35p per litre. Analysts warn that additional geopolitical disruption could push prices higher still, notably if distribution channels through key passages become interrupted.
The timing of these price increases has turned out to be especially difficult for British motorists approaching the Easter break. Families organising driving holidays encounter significantly higher petrol costs, with the expense of filling a typical family car now surpassing £82 for unleaded petrol—roughly £9.50 more than just a month earlier. Diesel-powered vehicles are impacted to an even greater extent, with a full tank now running to over £97, representing a £19 rise. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting 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 |
Crude oil volatility and geopolitical factors
Global oil markets stay highly responsive to Middle Eastern events, with crude prices mirroring investor concerns about potential disruptions to supply. The attacks on Iran have heightened uncertainty about stability in the region, prompting traders to demand risk premiums on petroleum contracts. Whilst current prices stay below the extraordinary peaks seen after Russia’s military incursion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts suggest that any further escalation in hostilities could trigger additional price spikes, particularly if major transport corridors or manufacturing plants experience disruption.
Government revenue and consumer impact
As petrol prices maintain their upward climb, 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 stays constant regardless of the market price, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton pointedly noted this inconsistency, proposing that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own windfall from higher fuel prices.
The more extensive economic effects transcend individual household budgets to include inflationary forces throughout the wider economy. Higher fuel costs flow through supply chains, affecting transport expenses for goods and services. Smaller enterprises reliant on fuel-intensive operations experience significant difficulty, with haulage companies and logistics providers bearing substantial cost rises. Household purchasing power falls as households allocate funds into fuel purchases rather than other purchases, potentially dampening economic expansion. The RAC has advised vehicle owners to organise refuelling efficiently and use price-comparison applications to identify the cheapest local forecourts, though these steps offer only marginal relief against the overall cost escalation.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending falls as household budgets focus on necessary fuel spending
What motorists ought to do at present
With petrol prices demonstrating no near-term likelihood of declining, motorists are being advised to take a more calculated approach to refuelling. The RAC has emphasised the importance of carefully planning journeys and leveraging price-comparison platforms to find the lowest-priced fuel retailers in their surrounding neighbourhood. Whilst such measures offer only modest savings, they can build substantially over time. Drivers should also consider whether unnecessary trips can be deferred or consolidated to minimise overall fuel expenditure. For those dealing with the Easter period, booking travel plans in advance and refuelling at lower-cost stations before setting out on extended journeys could aid in lessening the burden of higher petrol rates on vacation finances.
- Use petrol price finder tools to find the most affordable nearby petrol stations before refuelling
- Combine journeys where feasible and defer non-essential trips to lower fuel usage
- Fill up at more affordable stations before setting out on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and reduce total costs
