Petrol prices have exceeded the 150p-per-litre mark for the first occasion in nearly two years, fuelling the argument over whether petrol stations are capitalising on rocketing oil costs for financial gain. The average price for standard petrol climbed above the symbolic threshold on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The steep rises, which have increased by around £10 to the cost of filling a standard family vehicle in just a month, follow military tensions in the region that erupted a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of excessive profit-taking, instead blaming ministers for unjustly blaming at forecourt operators facing constrained supply chains.
The 150p barrier breached
The milestone marks a important juncture for British motorists, who have observed fuel costs rise consistently 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 complete 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 affect households already struggling with the rising cost of living. The increases are particularly poorly timed, arriving just as families begin planning their Easter trips and summer holidays, when demand for fuel typically reaches its highest levels.
Whilst the present prices remain below the peak levels witnessed after Russia’s attack on Ukraine in 2022, the rapid acceleration has reignited worries regarding cost and availability. Diesel has fared even worse, climbing 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s analysis reveals that petrol has increased 17p per litre in the same period. With distribution networks already strained and some forecourts experiencing temporary pump closures caused by exceptional demand, the combination of higher prices and potential availability issues threatens to worsen challenges for drivers across the country.
- Unleaded petrol now 17p costlier per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since tensions began
- Filling 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 challenge against official allegations
The escalating row over fuel pricing has revealed a growing rift between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers during the price surge. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and large retailers like Asda have insisted that margins have genuinely tightened 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 significantly affect household budgets and consumer views of government competence.
The Competition and Markets Authority has stated it will intensify monitoring of the fuel sector, signalling that regulatory oversight will tighten. Yet fuel retailers argue this heightened oversight overlooks the fundamental point: they are reacting to genuine supply constraints and wholesale price fluctuations, not creating false shortages for profit. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and VAT, possibly gaining more from the price surge than retailers do. This observation has added an uncomfortable dimension to the discussion, suggesting that criticism from Westminster may overlook the state’s own financial interests in elevated fuel costs.
Asda’s defence and procurement pressures
As the UK’s second-biggest fuel retailer, Asda has found itself at the centre of the pricing row. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, stressing instead that fuel volumes have surged significantly, with demand substantially outstripping available supply. He acknowledged 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 next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements highlight a critical separation between profit-seeking and inventory control. When demand increases sharply, as took place in the wake of the Middle East tensions, retailers can find it difficult to keep up stock levels in spite of their efforts. The Petrol Retailers Association backed up this narrative, recognising sporadic supply problems at “a small number of forecourts for one retailer” but asserting that overall UK supply is flowing normally. The body recommended drivers that there is no need to modify their regular buying patterns, suggesting that accounts of supply issues are overstated or confined to specific areas.
Middle East conflicts driving wholesale costs
The sharp rise in petrol and diesel prices has been directly linked to rising conflict in the Middle East, subsequent to military strikes between the US, Israel and Iran approximately a month ago. These political changes have generated considerable instability in global oil markets, driving wholesale prices higher and compelling retailers to transfer costs to consumers on the forecourt. The RAC has documented that standard petrol has climbed by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that additional geopolitical disruption could drive prices upward still, particularly if supply routes through key passages become blocked.
The scheduling of these price increases has turned out to be especially difficult for British motorists approaching the Easter holidays. Families organising driving holidays face considerably elevated petrol costs, with the cost of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 more than just a month before. Diesel-powered vehicles are impacted even more severely, with a full tank now costing over £97, constituting a £19 increase. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre mark as an “unwelcome milestone,” underlining the cumulative impact on family finances 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 fluctuations plus political tensions
Global oil markets stay highly sensitive to Middle Eastern developments, with crude prices reflecting investor concerns about potential disruptions to supply. The attacks on Iran have increased uncertainty about regional stability, prompting traders to demand premium rates on petroleum agreements. Whilst current prices stay below the exceptional highs witnessed following Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts suggest that any additional escalation in hostilities could spark further price increases, particularly if major transport corridors or manufacturing plants face disruption.
Government revenue and impact on consumers
As petrol prices keep rising steadily, the government has been placed in an awkward position. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel remains fixed 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 inconsistency, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own windfall from higher fuel prices.
The more extensive economic implications transcend personal family finances to cover inflationary forces across all economic sectors. Increased fuel expenses pass through supply chains, impacting haulage expenses for goods and services. SMEs reliant on high-fuel activities experience significant difficulty, with freight operators and courier services absorbing significant cost increases. Household purchasing power falls as households allocate funds to fuel stations rather than other purchases, likely slowing GDP growth. The RAC has counselled motorists to schedule fuel purchases carefully and utilise fuel-price apps to find the cheapest local forecourts, though these approaches deliver modest help against the wider price increase.
- Government collects set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as transport costs rise across all sectors and industries
- Consumer non-essential spending falls as family finances prioritise essential fuel purchases
What motorists ought to do at present
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to adopt a more strategic approach to refuelling. The RAC has emphasised the importance of planning journeys carefully and using price-comparison tools to find the lowest-priced fuel retailers in their local area. Whilst such approaches provide only marginal gains, they can build substantially over time. Drivers may also wish to evaluate whether discretionary journeys can be postponed or combined to reduce overall fuel consumption. For those dealing with the Easter period, arranging travel plans ahead of time and topping up at budget-friendly forecourts before setting out on extended journeys could help mitigate the impact of higher petrol rates on holiday spending.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before filling up
- Merge trips where feasible and postpone non-essential trips to reduce consumption
- Fill up at more affordable stations before embarking on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and reduce total costs
