Petrol prices have exceeded the 150p-per-litre threshold for the first occasion in almost two years, fuelling the discussion over whether fuel retailers are exploiting soaring oil costs for profit. The typical cost for standard petrol exceeded the important mark on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The sharp increases, which have pushed up by £10 to the cost of filling a typical family car in just a month, follow military tensions in the Middle East that broke out a month ago when the US and Israel conducted strikes on Iran. Asda’s executive chairman Allan Leighton has firmly rejected accusations of excessive profit-taking, instead criticising ministers for unjustly blaming at forecourt operators battling limited supply chains.
The 150p barrier breached
The milestone represents a important juncture for British motorists, who have observed fuel costs increase progressively since the Middle East tensions began. For a standard family vehicle requiring a 55-litre tank, drivers are now dealing with expenses exceeding £82 for a full tank of unleaded petrol—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwanted milestone that will impact families already grappling with the rising cost of living. The increases are particularly poorly timed, arriving just as families start planning their Easter trips and summer holidays, when fuel demand traditionally peaks.
Whilst the present prices remain below the peak levels recorded after Russia’s attack on Ukraine in 2022, the swift increase has revived worries regarding affordability and accessibility. Diesel has performed considerably worse, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s findings reveals that petrol has increased 17p per litre in the identical timeframe. With distribution networks already stretched and some forecourts reporting temporary pump closures caused by unusually high demand, the combination of higher prices and possible supply problems risks worsen challenges for drivers across the country.
- Unleaded petrol now 17p costlier per litre than pre-conflict levels
- Diesel prices have increased by 35p per litre since the tensions started
- Filling up a family car costs roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back on government accusations
The growing row over fuel pricing has exposed a growing rift between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances outside their remit. Ministers have adopted more aggressive 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 self-defeating. The Petrol Retailers Association and major chains 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 importance surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The Competition and Markets Authority has announced it will strengthen monitoring of the fuel sector, indicating that regulatory oversight will increase. Yet fuel retailers argue this increased scrutiny overlooks the fundamental point: they are responding to genuine supply constraints and wholesale price movements, not creating false shortages for profit. Asda’s Allan Leighton highlighted that the state benefits substantially from fuel duty and VAT, possibly gaining more from the price surge than fuel retailers. This observation has introduced an awkward element to the discussion, suggesting that government criticism may disregard the state’s own financial interests in elevated fuel costs.
Asda’s defense and logistics challenges
As the UK’s second largest fuel retailer, 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 increased substantially, with demand substantially outstripping 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 expects affected pumps to resume service following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements emphasise a key distinction between profit-seeking and inventory control. When demand surges unexpectedly, as has happened after the Middle East tensions, retailers may find it challenging to maintain standard inventory levels despite their best efforts. The Petrol Retailers Association supported this account, acknowledging sporadic supply problems at “a handful of forecourts for one retailer” but maintaining that supply across the UK is flowing normally. The body counselled drivers that there is no requirement to alter their usual purchasing habits, indicating that claims of stock problems are overstated or localised.
Middle East tensions pushing bulk pricing
The marked increase in petrol and diesel prices has been closely connected to rising conflict in the Middle East, subsequent to armed operations between the US, Israel and Iran about a month prior. These geopolitical developments have generated considerable instability in global oil markets, driving wholesale prices higher and compelling retailers to pass increases through to consumers on the forecourt. The RAC has recorded that regular fuel has climbed by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts warn that ongoing tensions could push prices higher still, notably if supply routes through key passages become disrupted.
The scheduling of these cost rises has turned out to be particularly painful for British motorists heading into the Easter holidays. Families planning road trips face significantly higher petrol costs, 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 impacted to an even greater extent, with a full tank now running to over £97, representing a £19 rise. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the combined effect on family finances during what should 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 volatility and political tensions
Global oil markets remain highly responsive to Middle Eastern developments, with crude prices reflecting investor concerns about possible disruptions to supply. The attacks on Iran have heightened doubt about regional stability, prompting traders to demand risk premiums on petroleum agreements. Whilst current prices remain below the extraordinary peaks seen after Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is concerning. Energy analysts suggest that any further escalation in conflict could spark additional price spikes, especially if major shipping routes or production facilities face disruption.
Government revenue and consumer impact
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 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 accusing retailers of exploiting the crisis, the government ought to recognise its own windfall from higher fuel prices.
The broader economic effects extend beyond domestic spending limits to cover inflation pressures across the entire economy. Elevated petrol prices pass through distribution networks, impacting delivery costs for products and services. Smaller enterprises relying on fuel-intensive operations face particular hardship, with freight operators and delivery services absorbing significant cost increases. Consumer purchasing capacity declines as households allocate funds into fuel purchases rather than alternative spending, likely slowing GDP growth. The RAC has counselled vehicle owners to schedule fuel purchases carefully and employ price-checking tools to find the cheapest local forecourts, though these approaches offer only marginal relief against the overall cost escalation.
- Government collects set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures intensify as transport costs rise across all sectors and industries
- Consumer discretionary spending declines as family finances prioritise essential fuel purchases
What motorists 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 highlighted the value of carefully planning journeys and using price-comparison tools to locate the most affordable petrol stations in their local area. Whilst such measures offer only modest savings, they can accumulate meaningfully over time. Drivers may also wish to evaluate 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 help mitigate the impact of higher petrol rates on vacation finances.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before refuelling
- Combine journeys where possible and postpone non-essential trips to lower fuel usage
- Fill up at cheaper locations before setting out on longer Easter holiday journeys
- Map your journey with care to maximise fuel efficiency and reduce total costs
