Petrol prices have exceeded the 150p-per-litre threshold for the first time in almost two years, heightening the discussion over whether fuel retailers are taking advantage of surging oil costs for profit. The average price for unleaded petrol climbed above the important mark on Friday, whilst diesel surged past 177p, based on figures from the RAC. The steep rises, which have pushed up by £10 to the cost of filling a standard family vehicle in only a month, follow regional conflict 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 struggling with restricted supply networks.
The 150p threshold broken
The milestone represents a significant moment 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 tank, drivers are now encountering costs exceeding £82 for a full tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwanted milestone that will sting households already dealing with the rising cost of living. The increases are especially badly timed, arriving just as families begin planning their Easter getaways and summer breaks, when demand for fuel typically reaches its highest levels.
Whilst the current prices remain below the record highs recorded following Russia’s attack on Ukraine in 2022, the rapid acceleration has revived worries regarding affordability and accessibility. Diesel has performed considerably worse, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s analysis reveals that petrol has increased 17p per litre in the same period. With supply chains already stretched and some forecourts reporting brief shutdowns caused by unusually high demand, the mix of elevated costs and possible supply problems risks compound difficulties for drivers across the country.
- Unleaded fuel now 17p more expensive 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 a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers challenge against state claims
The intensifying row over fuel pricing has highlighted a widening divide between the government and forecourt operators, who argue they are being wrongly targeted for circumstances they cannot influence. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers during the pricing spike. 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 actually compressed during the latest surge, leaving scant scope for profiteering even if operators were willing to do so. This blame-shifting reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and public perception of government competence.
The CMA has stated it will strengthen monitoring of the fuel sector, indicating that regulatory scrutiny will increase. Yet retailers argue this increased scrutiny misses the core issue: they are responding to real supply limitations and wholesale price movements, not creating artificial scarcity for profit. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and VAT, potentially earning more from the price spike than fuel retailers. This observation has introduced an awkward element to the discussion, implying that criticism from Westminster may disregard the government’s own economic stakes in elevated fuel costs.
Asda’s defense and logistics challenges
As the UK’s second largest fuel retailer, 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, stressing instead that fuel volumes have surged significantly, with demand far exceeding available supply. He conceded that a small number of pumps have temporarily gone out of service due to exceptional customer demand, but maintained that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to resume service following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s remarks highlight a important distinction between profit-seeking and supply management. When demand spikes dramatically, as took place in the wake of the Middle East tensions, retailers can struggle to maintain standard stock levels despite making every effort. The Association of Petrol Retailers supported this narrative, recognising sporadic supply problems at “a small number of forecourts for one retailer” but maintaining that the UK’s overall supply is flowing normally. The body recommended drivers that there is no requirement to change their normal shopping behaviour, implying that claims of stock problems have been inflated or confined to specific areas.
Middle East tensions increasing wholesale prices
The sharp rise in petrol and diesel prices has been closely connected to escalating tensions in the Middle East, in the wake of combat actions between the US, Israel and Iran about a month prior. These political changes have produced substantial volatility in international energy markets, pushing wholesale costs upwards and obliging retailers to pass increases through to consumers at fuel stations. The RAC has recorded that regular fuel has climbed by 17p per litre since the conflict began, whilst diesel has increased even more dramatically by 35p per litre. Analysts alert that ongoing tensions could push prices higher still, particularly if supply routes through essential bottlenecks become disrupted.
The timing of these cost rises has turned out to be particularly painful for British drivers approaching the Easter break. Families planning road trips encounter significantly higher fuel bills, with the cost of filling a typical family car now exceeding £82 for standard petrol—roughly £9.50 more than just a month before. Diesel-powered vehicles are affected even more severely, with a full tank now costing over £97, constituting a £19 rise. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the cumulative impact on family finances during what should 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 geopolitical factors
Global oil markets stay highly sensitive to Middle Eastern events, with crude prices reflecting investor worries about possible supply disruptions. The attacks on Iran have increased doubt about regional stability, prompting traders to require premium rates on petroleum agreements. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts suggest that any additional escalation in hostilities could spark further price increases, particularly if major transport corridors or manufacturing plants face disruption.
Public finances and consumer impact
As petrol prices continue their upward trajectory, the government has found itself in an difficult situation. Whilst government officials have openly condemned fuel retailers for possible price gouging, 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 collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton pointedly noted this inconsistency, suggesting that before accusing retailers of exploiting the crisis, the government ought to recognise its own windfall from higher fuel prices.
The broader economic effects extend beyond personal family finances to cover inflationary forces across all economic sectors. Increased fuel expenses flow through supply chains, affecting transport expenses for commodities and services. Smaller enterprises reliant on fuel-heavy processes encounter considerable challenges, with transport firms and courier services bearing substantial cost rises. Household purchasing power diminishes as families redirect money toward petrol pumps rather than different expenditures, potentially dampening economic growth. The RAC has recommended vehicle owners to organise refuelling efficiently and utilise fuel-price apps to find the cheapest local forecourts, though such measures provide limited assistance 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 shipping expenses rise across all sectors and industries
- Consumer discretionary spending declines as family finances focus on essential fuel purchases
What motorists should do at present
With petrol prices displaying no immediate prospect of falling, motorists are being encouraged to adopt a more strategic approach to refuelling. The RAC has highlighted the value of carefully planning journeys and using price-comparison tools to locate the most affordable petrol stations in their local area. Whilst such approaches provide only marginal gains, they can build substantially over time. Drivers should also consider whether non-essential journeys can be delayed or merged to minimise overall fuel expenditure. For those facing the Easter holidays, arranging travel plans ahead of time and filling up at cheaper locations before undertaking longer drives could help mitigate the impact of elevated pump prices on holiday spending.
- Use fuel price comparison apps to find the cheapest local forecourts before refuelling
- Combine journeys where possible and defer non-essential trips to reduce consumption
- Fill up at cheaper locations before embarking on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and minimise overall expenditure
