Petrol prices have surpassed the 150p-per-litre milestone for the first time in nearly two years, intensifying the debate over whether petrol stations are taking advantage of soaring oil costs for profit. The typical cost for standard petrol exceeded the symbolic threshold on Friday, whilst diesel surged past 177p, based on 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 military tensions in the region that broke out a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of excessive profit-taking, instead criticising ministers for unfairly “pointing the finger” at forecourt operators facing limited supply chains.
The 150p barrier breached
The milestone constitutes a significant moment for British motorists, who have seen fuel costs climb steadily 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 fuel—nearly £10 more than just a month earlier. The RAC has characterised the breach of 150p as an unwelcome milestone that will affect households already grappling 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 fuel demand typically reaches its highest levels.
Whilst the present prices remain below the record highs witnessed following Russia’s attack on Ukraine in 2022, the rapid acceleration has reignited worries regarding cost and availability. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s findings reveals that unleaded petrol has risen 17p per litre in the identical timeframe. With distribution networks already strained and some forecourts reporting temporary pump closures caused by unusually high demand, the combination of higher prices and possible supply problems risks compound difficulties for motorists across the country.
- Unleaded petrol now 17p more expensive per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since the tensions started
- Filling up a family car costs roughly £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back on government accusations
The escalating row over fuel pricing has highlighted a deepening split 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 throughout the price surge. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and major chains like Asda have insisted that margins have truly narrowed during the latest surge, leaving little room for profiteering even if operators were willing to do so. This mutual recrimination reflects the political sensitivity surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The Competition and Markets Authority has stated it will strengthen monitoring of the fuel sector, indicating that regulatory scrutiny will increase. Yet retailers contend this increased scrutiny misses the core issue: they are reacting to real supply limitations and wholesale price movements, not creating false shortages for financial gain. Asda’s Allan Leighton pointed out that the government itself benefits substantially from fuel duty and VAT, potentially earning more from the price spike than retailers do. This remark has added an uncomfortable dimension to the debate, suggesting that government criticism may overlook the state’s own financial interests in elevated fuel costs.
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, emphasising instead that fuel volumes have increased substantially, with demand substantially outstripping 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 return to operation following its next 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 spikes dramatically, as has happened after the Middle East tensions, retailers may find it challenging to keep up inventory levels despite making every effort. The Association of Petrol Retailers backed up this claim, acknowledging isolated availability issues at “a small number of forecourts for one retailer” but maintaining that supply across the UK is operating as usual. The body recommended drivers that there is no need to alter their usual purchasing habits, suggesting that claims of stock problems are overstated or localised.
Middle Eastern instability pushing wholesale prices
The notable surge in petrol and diesel prices has been closely connected to escalating tensions in the Middle East, in the wake of military strikes between the US, Israel and Iran about a month prior. These geopolitical developments have produced substantial volatility in global oil markets, forcing wholesale costs up and forcing retailers to hand on rises to consumers on the forecourt. The RAC has noted that regular fuel has increased by 17p per litre since the fighting commenced, whilst diesel has increased even more dramatically by 35p per litre. Analysts alert that additional geopolitical disruption could force prices up still, notably if distribution channels through key passages become blocked.
The timing of these price increases has turned out to be particularly painful for British motorists approaching the Easter holidays. Families planning driving holidays encounter considerably elevated fuel bills, with the expense of topping up a standard family vehicle now surpassing £82 for standard petrol—roughly £9.50 higher than just a month before. Diesel-powered vehicles are affected to an even greater extent, with a full tank now costing over £97, constituting a £19 rise. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the cumulative impact on household budgets 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 |
Oil market fluctuations plus political tensions
Global oil sectors remain highly sensitive to Middle Eastern events, with crude prices reflecting investor worries about possible supply disruptions. The attacks on Iran have heightened doubt about stability in the region, leading traders to require premium rates on petroleum contracts. Whilst current prices remain below the exceptional highs 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.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has found itself in an awkward position. Whilst government officials have openly condemned 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 receives identical duty per litre no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this contradiction, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own windfall from higher fuel prices.
The wider economic effects extend beyond individual household budgets to cover price increases throughout the wider economy. Elevated petrol prices feed through distribution networks, impacting haulage expenses for products and services. Small businesses reliant on fuel-heavy processes encounter considerable challenges, with transport firms and courier services facing major expense increases. Household purchasing power declines as households allocate funds into fuel purchases rather than other purchases, possibly reducing GDP growth. The RAC has recommended drivers to schedule fuel purchases carefully and utilise fuel-price apps to identify the cheapest local forecourts, though these approaches deliver modest help against the wider price increase.
- Government collects set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as transport costs rise across all sectors and industries
- Consumer discretionary spending declines as family finances focus on essential fuel purchases
What drivers ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being urged to take a more calculated approach to refuelling. The RAC has emphasised the importance of planning journeys carefully and utilising price-comparison applications to find the lowest-priced fuel retailers in their local region. Whilst such measures offer only modest savings, they can accumulate meaningfully over time. Drivers ought to also think about whether discretionary journeys can be delayed or merged to lower total fuel usage. For those preparing for the Easter break, booking travel plans in advance and refuelling at lower-cost stations before undertaking longer drives could help mitigate the impact of elevated pump prices on vacation finances.
- Use fuel price comparison apps to locate the cheapest local forecourts before filling up
- Combine journeys where possible and postpone unnecessary journeys to lower fuel usage
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Plan routes carefully to maximise fuel efficiency and minimise overall expenditure
