Petrol prices have surpassed the 150p-per-litre milestone for the first occasion in nearly two years, heightening the argument over whether petrol stations are exploiting surging oil costs for financial gain. The average price for unleaded petrol climbed above the important mark on Friday, whilst diesel surged past 177p, according to figures from the RAC. The sharp increases, which have added nearly £10 to the price of topping up a typical family car in only a month, follow geopolitical 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 firmly rejected accusations of excessive profit-taking, instead pointing to ministers for unjustly blaming at petrol station owners facing constrained supply chains.
The 150p level exceeded
The milestone represents a significant moment for British motorists, who have seen fuel costs rise consistently since the regional tensions in the Middle East began. For a typical family car 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 a month earlier. The RAC has described the breach of 150p as an unwanted milestone that will impact families already struggling with the rising cost of living. The increases are especially badly timed, arriving just as families begin planning their Easter trips and summer breaks, when fuel demand conventionally surges.
Whilst the current prices stay below the record highs recorded after Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived worries regarding affordability and accessibility. Diesel has fared even worse, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s findings reveals that petrol has risen 17p per litre in the same period. With supply chains already stretched and some petrol stations reporting brief shutdowns caused by unusually high demand, the mix of higher prices and potential availability issues threatens to compound difficulties for motorists throughout the nation.
- 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 one month ago
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back on official allegations
The escalating row over fuel pricing has highlighted a deepening split between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted progressively confrontational 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 counterproductive. The Petrol Retailers Association and major chains like Asda have insisted that margins have truly narrowed during the recent spike, leaving little room for profiteering even if operators were disposed to act. This finger-pointing reflects the political importance surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The Competition and Markets Authority has stated it will strengthen oversight of the fuel sector, signalling that regulatory oversight will tighten. Yet retailers contend this increased scrutiny misses the fundamental point: 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 government itself profits significantly from fuel duty and VAT, potentially earning more from the price spike than retailers do. This remark has added an awkward element to the discussion, suggesting that government criticism may overlook the government’s own economic stakes in higher fuel prices.
Asda’s defence and supply difficulties
As the UK’s second-biggest fuel retailer, Asda has positioned itself at the centre of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, 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 unusually high customer demand, but insisted that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to resume service following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks underscore a critical distinction between profiteering and supply management. When demand surges unexpectedly, as has happened following the Middle East tensions, retailers can struggle to maintain normal stock levels despite their best efforts. The Petrol Retailers Association corroborated this narrative, acknowledging isolated availability issues at “a handful of forecourts for one retailer” but insisting that overall UK supply is functioning smoothly. The association advised drivers that there is no reason to change their normal shopping behaviour, indicating that claims of stock problems have been exaggerated or confined to specific areas.
Middle East conflicts pushing wholesale prices
The sharp rise in petrol and diesel prices has been closely connected to mounting instability in the Middle East, subsequent to armed operations between the US, Israel and Iran about a month prior. These political changes have created significant uncertainty in worldwide petroleum markets, forcing wholesale costs up and forcing retailers to hand on rises to consumers at the pump. The RAC has noted that regular fuel has climbed by 17p per litre since the fighting commenced, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that ongoing tensions could force prices up still, especially should distribution channels through key passages become interrupted.
The scheduling of these price increases has turned out to be especially difficult for British motorists heading into the Easter holidays. Families planning driving holidays 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 earlier. Diesel cars are affected even more severely, with a complete fill-up now running to 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 household budgets during what ought to be a time 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 sectors stay highly sensitive to Middle Eastern events, with crude prices mirroring 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 contracts. Whilst current prices remain below the extraordinary peaks witnessed following Russia’s military incursion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts suggest that any further escalation in conflict could trigger further price increases, especially if major transport corridors or production facilities experience disruption.
Government revenue and impact on consumers
As petrol prices maintain their upward climb, the government has been placed in an awkward position. 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 collects the same tax per litre no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this inconsistency, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own gains from elevated petrol costs.
The broader financial consequences go further than domestic spending limits to encompass inflation pressures across the entire economy. Higher fuel costs feed through distribution networks, impacting transport expenses for goods and services. Small businesses dependent on fuel-intensive operations face particular hardship, with haulage companies and delivery services bearing substantial cost rises. Household purchasing power diminishes as people channel spending into fuel purchases rather than other purchases, likely slowing GDP growth. The RAC has recommended vehicle owners to organise refuelling efficiently and use price-comparison applications to find the most affordable nearby petrol stations, though such measures offer only marginal relief against the broader price surge.
- Government collects set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise across all sectors and industries
- Consumer discretionary spending falls as household budgets focus on essential fuel purchases
What drivers ought to do now
With petrol prices displaying no immediate prospect of falling, 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 locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such steps deliver only limited savings, they can accumulate meaningfully over time. Drivers should also consider whether non-essential journeys can be delayed or merged to lower total fuel usage. For those preparing for the Easter break, booking travel plans in advance and filling up at cheaper locations before setting out on extended journeys could aid in lessening the burden of increased fuel costs on holiday budgets.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before filling up
- Merge trips where possible and defer unnecessary journeys to reduce consumption
- Fill up at more affordable stations before embarking on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and reduce total costs
