Petrol prices have exceeded the 150p-per-litre threshold for the first occasion in almost two years, intensifying the argument over whether petrol stations are exploiting surging oil costs for financial gain. The typical cost for unleaded petrol climbed above the important mark on Friday, whilst diesel surged past 177p, according to figures from the RAC. The steep rises, 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 broke out a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has firmly rejected accusations of profiteering, instead criticising ministers for wrongly accusing at petrol station owners battling limited supply chains.
The 150p barrier breached
The milestone represents a significant moment for British motorists, who have watched fuel costs climb steadily since the Middle East tensions began. For a typical family car requiring a 55-litre fuel tank, drivers are now dealing with expenses exceeding £82 for a full tank of unleaded petrol—nearly £10 more than just a month earlier. The RAC has termed the breach of 150p as an unwelcome milestone that will affect households already struggling 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 demand for fuel typically reaches its highest levels.
Whilst the present prices stay below the peak levels recorded after Russia’s attack on Ukraine in 2022, the rapid acceleration has revived worries regarding cost and availability. Diesel has fared even worse, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis reveals that unleaded petrol has risen 17p per litre in the identical timeframe. With supply chains already stretched and some petrol stations experiencing temporary pump closures caused by unusually high demand, the combination of higher prices and potential availability issues threatens to worsen challenges for motorists across the country.
- Unleaded petrol now 17p costlier 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 one month ago
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers challenge on government accusations
The growing row over fuel pricing has exposed a widening divide between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances beyond their control. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers during the price surge. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and major chains 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 blame-shifting reflects the political importance surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The CMA has announced it will intensify monitoring of the petrol market, signalling that regulatory scrutiny will tighten. Yet fuel retailers argue this increased scrutiny overlooks the core issue: they are reacting to real supply limitations and wholesale price fluctuations, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and VAT, possibly gaining more from the price surge than retailers do. This remark has introduced an uncomfortable dimension to the debate, implying that criticism from Westminster may disregard the state’s own financial interests in elevated fuel costs.
Asda’s defense and logistics challenges
As the UK’s second-biggest fuel retailer, Asda has found itself at the heart of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, emphasising instead that fuel volumes have increased substantially, with demand far exceeding available supply. He acknowledged that a small number of pumps have briefly stopped operating due to exceptional customer demand, but insisted that Asda has not shut down any petrol stations completely. The company anticipates the affected pumps to resume service following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s remarks emphasise a key separation between profit-seeking and inventory control. When demand increases sharply, as has happened following the Middle East tensions, retailers may find it challenging to maintain standard inventory levels despite making every effort. The Petrol Retailers Association supported this narrative, admitting isolated availability issues at “a handful of forecourts for one retailer” but maintaining that supply across the UK is operating as usual. The association advised drivers that there is no requirement to modify their regular buying patterns, indicating that claims of stock problems have been exaggerated or confined to specific areas.
Middle East tensions pushing wholesale costs
The marked increase in petrol and diesel prices has been closely connected to rising conflict in the Middle East, in the wake of combat actions between the US, Israel and Iran approximately a month ago. These geopolitical developments have produced substantial volatility in worldwide petroleum markets, forcing wholesale costs up and forcing retailers to transfer costs to consumers at the pump. The RAC has documented that regular fuel has climbed by 17p per litre since the conflict began, whilst diesel has increased even more dramatically by 35p per litre. Analysts warn that ongoing tensions could drive prices upward still, particularly if supply routes through critical chokepoints become interrupted.
The scheduling of these cost rises has turned out to be particularly painful for British drivers approaching the Easter holidays. Families organising driving holidays encounter significantly higher fuel bills, with the cost of topping up a standard family vehicle now exceeding £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 full tank now running to over £97, representing a £19 increase. The RAC’s Simon Williams described the breaching 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 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 geopolitical factors
Global oil sectors remain highly sensitive to Middle Eastern events, with crude prices reflecting investor worries about possible supply disruptions. The attacks on Iran have increased doubt about stability in the region, prompting traders to demand premium rates on petroleum agreements. Whilst current prices remain below the extraordinary peaks witnessed following Russia’s invasion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts suggest that any further escalation in hostilities could trigger further price increases, particularly if major transport corridors or production facilities face disruption.
Government revenue and impact on consumers
As petrol prices keep rising steadily, the government has been placed in an difficult situation. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has quietly benefited substantially from the spike in fuel costs. Excise duty on fuel stays constant regardless of the wholesale cost, meaning the government receives identical duty per litre no matter if 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 gains from elevated petrol costs.
The wider financial consequences extend beyond individual household budgets to encompass price increases throughout the wider economy. Elevated petrol prices flow through distribution networks, influencing haulage expenses for commodities and services. SMEs reliant on high-fuel activities experience significant difficulty, with transport firms and delivery services absorbing significant cost increases. Consumer purchasing capacity diminishes as people channel spending to fuel stations rather than different expenditures, likely slowing GDP growth. The RAC has counselled motorists to plan refuelling strategically and use price-comparison applications to locate the lowest-priced local fuel retailers, though these approaches deliver modest help against the wider price increase.
- Government receives fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures intensify as shipping expenses rise throughout various sectors and industries
- Consumer non-essential spending declines as family finances focus on necessary fuel spending
What motorists ought to do at present
With petrol prices showing no immediate signs of retreating, motorists are being urged to implement a more planned strategy to refuelling. The RAC has highlighted the value of carefully planning journeys and utilising price-comparison applications to locate the most affordable petrol stations in their local region. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers may also wish to evaluate whether non-essential journeys can be postponed or combined to lower total fuel usage. For those preparing for the Easter break, 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 holiday budgets.
- Use fuel price comparison apps to locate the cheapest local forecourts before refuelling
- Combine journeys where feasible and defer unnecessary journeys to lower fuel usage
- Fill up at cheaper locations before setting out on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and minimise overall expenditure
