Petrol prices have exceeded the 150p-per-litre threshold for the first time in nearly two years, intensifying the debate over whether petrol stations are capitalising on rocketing oil costs for profit. The typical cost for unleaded petrol exceeded the symbolic threshold on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The steep rises, which have increased by around £10 to the cost of filling a standard family vehicle in only a month, follow regional conflict in the Middle East that erupted a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has strongly denied accusations of profiteering, instead blaming ministers for wrongly accusing at forecourt operators battling limited supply chains.
The 150p ceiling surpassed
The milestone constitutes a significant moment for British motorists, who have seen fuel costs increase progressively since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre fuel tank, drivers are now dealing with expenses exceeding £82 for a complete tank of unleaded petrol—nearly £10 more than just a month earlier. The RAC has described the breach of 150p as an unwelcome milestone that will sting households already dealing with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families begin planning their Easter getaways and summer breaks, when fuel demand typically reaches its highest levels.
Whilst the current prices stay below the record highs witnessed after Russia’s attack on Ukraine in 2022, the swift increase has reignited worries regarding affordability and accessibility. Diesel has performed considerably worse, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s analysis shows that unleaded petrol has increased 17p per litre in the same period. With distribution networks already stretched and some petrol stations reporting temporary pump closures due to exceptional demand, the mix of elevated costs and potential availability issues threatens to worsen challenges for motorists across the country.
- Unleaded fuel 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 approximately £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back on state claims
The escalating row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances they cannot influence. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid the pricing spike. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and large retailers like Asda have insisted that margins have actually compressed during the recent spike, leaving scant scope for profiteering even if operators were inclined to do so. This mutual recrimination reflects the political importance surrounding fuel costs, which directly impact household budgets and consumer views of government competence.
The Competition and Markets Authority has stated it will strengthen oversight of the petrol market, signalling that regulatory oversight will increase. Yet retailers argue this increased scrutiny overlooks the core issue: they are responding to genuine supply constraints and wholesale price movements, not creating false shortages for profit. Asda’s Allan Leighton pointed out that the government itself profits significantly from fuel duty and VAT, possibly gaining more from the price spike than retailers do. This observation has added an awkward element to the debate, implying that government criticism may overlook the state’s own economic stakes in elevated fuel costs.
Asda’s defence and supply challenges
As the UK’s second-biggest fuel supplier, Asda has found itself at the centre of the pricing row. Executive chairman Leighton has categorically rejected 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 insisted that Asda has not closed any forecourts entirely. The company expects affected pumps to resume service following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations underscore a critical separation between profiteering and supply management. When demand increases sharply, as took place in the wake of the Middle East tensions, retailers may find it challenging to maintain normal inventory levels despite making every effort. The Association of Petrol Retailers corroborated this claim, admitting isolated availability issues at “a handful of forecourts for one retailer” but insisting that the UK’s overall supply is flowing normally. The association counselled drivers that there is no requirement to modify their regular purchasing habits, suggesting that claims of stock problems have been inflated or isolated.
Middle Eastern tensions pushing bulk pricing
The notable surge in petrol and diesel prices has been directly linked to escalating tensions in the Middle East, following armed operations between the US, Israel and Iran about a month prior. These regional shifts have produced substantial volatility in international energy markets, forcing wholesale costs up and compelling retailers to transfer costs to consumers at the pump. The RAC has recorded that standard petrol has increased by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that ongoing tensions could push prices higher still, particularly if supply routes through critical chokepoints become disrupted.
The scheduling of these cost rises has turned out to be particularly painful for British drivers heading into the Easter holidays. Families organising road trips encounter significantly higher fuel bills, with the expense of topping up a standard family vehicle now surpassing £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel-powered vehicles are affected even more severely, with a complete fill-up now costing over £97, constituting a £19 increase. The RAC’s Simon Williams described the breaching of the 150p-per-litre mark as an “unwelcome milestone,” underlining the cumulative impact 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 |
Oil market volatility and political tensions
Global oil markets stay highly responsive to Middle Eastern events, with crude prices reflecting investor concerns about potential disruptions to supply. The attacks on Iran have heightened uncertainty about regional stability, leading traders to require risk premiums on petroleum contracts. Whilst current prices remain below the exceptional highs seen after Russia’s invasion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts indicate that any additional escalation in conflict could spark further price increases, particularly if major shipping routes or manufacturing plants face disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has found itself in an difficult situation. Whilst government officials have openly condemned fuel retailers for potential profiteering, 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 collects the same tax 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 broader economic effects extend beyond individual household budgets to cover inflation pressures throughout the wider economy. Elevated petrol prices pass through supply networks, impacting haulage expenses for goods and services. Smaller enterprises dependent on fuel-heavy processes experience significant difficulty, with transport firms and delivery services absorbing significant cost increases. Consumer spending power declines as people channel spending toward petrol pumps rather than other purchases, likely slowing GDP growth. The RAC has advised vehicle owners to organise refuelling efficiently and utilise fuel-price apps to locate the cheapest local forecourts, though these steps offer only marginal relief against the broader price surge.
- Government receives 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 household budgets focus on essential fuel purchases
What drivers ought to do at present
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to take a more calculated approach to refuelling. The RAC has highlighted the value of mapping out trips methodically and using price-comparison tools to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such measures offer only modest savings, they can build substantially over time. Drivers ought to also think about whether non-essential journeys can be postponed or combined to minimise overall fuel expenditure. For those dealing with the Easter period, booking travel plans in advance and filling up at cheaper locations before embarking on longer trips could assist in reducing the effect of increased fuel costs on holiday spending.
- Use fuel price comparison apps to locate the most affordable nearby petrol stations before filling up
- Combine journeys where feasible and postpone unnecessary journeys to lower fuel usage
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and reduce total costs