Petrol prices have surpassed the 150p-per-litre milestone for the first occasion in almost two years, fuelling the debate over whether fuel retailers are taking advantage of surging oil costs for financial gain. The typical cost for standard petrol rose past the important mark on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The steep rises, which have added nearly £10 to the cost of filling a typical family car in only 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 chief executive Allan Leighton has strongly denied accusations of excessive profit-taking, instead pointing to ministers for unfairly “pointing the finger” at petrol station owners facing constrained supply chains.
The 150p ceiling surpassed
The milestone constitutes a important juncture for British motorists, who have observed fuel costs increase progressively since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a complete tank of unleaded petrol—nearly £10 more than just four weeks earlier. The RAC has termed the breach of 150p as an unwanted milestone that will sting households already dealing with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families commence planning their Easter getaways and summer breaks, when demand for fuel traditionally peaks.
Whilst the present prices stay below the peak levels recorded following Russia’s attack on Ukraine in 2022, the swift increase has reignited worries regarding affordability and accessibility. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s findings reveals that unleaded petrol has increased 17p per litre in the same period. With supply chains already stretched and some forecourts experiencing temporary pump closures due to exceptional demand, the mix of higher prices and possible supply problems risks worsen challenges for motorists across the country.
- Unleaded petrol now 17p more expensive per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since tensions began
- Filling up a family car costs roughly £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retailers challenge on official allegations
The growing row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being unjustly blamed 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 unhelpful. The Petrol Retailers Association and large retailers like Asda have insisted that margins have actually compressed during the current increase, leaving little room for profiteering even if operators were inclined to do so. This finger-pointing reflects the political importance surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The CMA has announced it will strengthen oversight of the fuel sector, indicating that regulatory scrutiny will increase. Yet fuel retailers argue this increased scrutiny overlooks the fundamental point: they are reacting to real supply limitations and wholesale price fluctuations, not engineering false shortages for financial gain. Asda’s Allan Leighton pointed out that the government itself profits significantly from fuel duty and value-added tax, potentially earning more from the price surge than retailers do. This observation has introduced an uncomfortable dimension to the debate, implying that criticism from Westminster may overlook the government’s own financial interests in higher fuel prices.
Asda’s defence and procurement pressures
As the UK’s second largest fuel supplier, Asda has found itself at the centre of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have increased substantially, with demand far exceeding available supply. He acknowledged that a small number of pumps have temporarily gone out of service due to unusually high customer demand, but maintained that Asda has not shut down any petrol stations completely. 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 important separation between profit-seeking and inventory control. When demand increases sharply, as has happened after the regional tensions in the Middle East, retailers can struggle to maintain normal stock levels despite their best efforts. The Petrol Retailers Association backed up this narrative, recognising isolated availability issues at “a small number of forecourts for one retailer” but maintaining that the UK’s overall supply is operating as usual. The association counselled drivers that there is no reason to change their normal shopping behaviour, indicating that reports of shortages have been inflated or localised.
Middle East tensions pushing bulk pricing
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 geopolitical developments have generated considerable instability in global oil markets, pushing wholesale costs upwards and forcing retailers to transfer costs to consumers on the forecourt. The RAC has documented that unleaded petrol has climbed by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts warn that further regional instability could push prices higher still, especially should transport corridors through essential bottlenecks become disrupted.
The scheduling of these price increases has turned out to be especially difficult for British motorists approaching the Easter break. Families planning driving holidays face considerably elevated petrol costs, with the expense of topping up a standard family vehicle now exceeding £82 for standard petrol—roughly £9.50 more than just a month earlier. Diesel-powered vehicles are affected to an even greater extent, with a complete fill-up now costing over £97, constituting a £19 rise. The RAC’s Simon Williams described the breaching of the 150p-per-litre mark as an “unwelcome milestone,” underlining the combined effect on household budgets during what should be a period 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 |
Oil market volatility and political tensions
Global oil markets remain highly sensitive to Middle Eastern events, with crude prices mirroring investor concerns about potential disruptions to supply. The attacks on Iran have heightened uncertainty about regional stability, prompting traders to require premium rates on petroleum agreements. Whilst current prices remain below the extraordinary peaks witnessed following Russia’s invasion of Ukraine—when wholesale costs reached record highs—the trajectory is concerning. Energy analysts suggest that any further escalation in hostilities could spark additional price spikes, especially if major shipping routes or production facilities face disruption.
Public finances and consumer impact
As petrol prices keep rising steadily, the government has been placed in an difficult situation. Whilst government officials have openly condemned fuel retailers for potential profiteering, the Treasury has quietly benefited substantially from the spike in fuel costs. Excise duty on fuel remains fixed 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, suggesting that before accusing retailers of exploiting the crisis, the government ought to recognise its own windfall from higher fuel prices.
The more extensive financial consequences go further than personal family finances to cover inflation pressures across the entire economy. Higher fuel costs flow through supply networks, impacting delivery costs for products and services. SMEs relying on high-fuel activities face particular hardship, with transport firms and courier services absorbing significant cost increases. Consumer spending power diminishes as people channel spending into fuel purchases rather than different expenditures, likely slowing economic expansion. The RAC has recommended vehicle owners to plan refuelling strategically and use price-comparison applications to locate the cheapest local forecourts, though these approaches provide limited assistance against the wider price increase.
- Government collects fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures increase as shipping expenses rise across all sectors and industries
- Consumer discretionary spending falls as household budgets prioritise essential fuel purchases
What drivers should do now
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 stressed the significance of planning journeys carefully and utilising price-comparison applications to locate the most affordable petrol stations in their local area. Whilst such steps deliver only limited savings, they can build substantially over time. Drivers ought to also think about whether unnecessary trips can be delayed or merged to reduce overall fuel consumption. For those preparing for the Easter break, arranging travel plans ahead of time and refuelling at lower-cost stations before embarking on longer trips could help mitigate the impact of higher petrol rates on vacation finances.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before filling up
- Merge trips where feasible and defer unnecessary journeys to lower fuel usage
- Fill up at more affordable stations before setting out on extended Easter break trips
- Plan routes carefully to improve fuel economy and reduce total costs
