Petrol prices have surpassed the 150p-per-litre milestone for the first occasion in nearly two years, heightening the debate over whether fuel retailers are exploiting rocketing oil costs for financial gain. The average price for unleaded petrol exceeded the important mark on Friday, whilst diesel surged past 177p, based on figures from the RAC. The sharp increases, which have increased by around £10 to the cost of filling a typical family car in only a month, follow geopolitical tensions in the Middle East that erupted a month ago when the US and Israel conducted strikes on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of profiteering, instead criticising ministers for unjustly blaming at petrol station owners struggling with restricted supply networks.
The 150p level exceeded
The milestone represents a significant moment for British motorists, who have observed fuel costs increase progressively since the Middle East tensions began. For a standard family vehicle requiring a 55-litre fuel 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 described the breach of 150p as an unwanted milestone that will affect households already struggling with the rising cost of living. 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 current prices remain below the record highs witnessed following Russia’s attack on Ukraine in 2022, the rapid acceleration has reignited concerns about affordability and accessibility. Diesel has struggled even more, climbing 35p per litre since the conflict began and now standing at over 177p. The RAC’s analysis reveals that petrol has risen 17p per litre in the same period. With distribution networks already strained and some forecourts experiencing temporary pump closures caused by unusually high demand, the mix of elevated costs and possible supply problems threatens to worsen challenges for drivers across the country.
- Unleaded petrol now 17p costlier per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since the tensions started
- Filling up a family car costs approximately £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back against government accusations
The escalating row over fuel pricing has exposed a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances beyond their control. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid 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 truly narrowed during the recent spike, leaving little room for profiteering even if operators were willing to do so. This finger-pointing reflects the political sensitivity surrounding fuel costs, which significantly affect household budgets and popular understanding of government competence.
The CMA has announced it will intensify oversight of the fuel sector, signalling that regulatory scrutiny will tighten. Yet retailers contend this increased scrutiny overlooks the core issue: they are responding to genuine supply constraints and wholesale price movements, 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, possibly gaining more from the price spike than retailers do. This remark has added an uncomfortable dimension to the debate, suggesting that criticism from Westminster may disregard the government’s own economic stakes in higher fuel prices.
Asda’s defense and logistics difficulties
As the UK’s second-biggest fuel retailer, Asda has positioned itself at the centre of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, stressing instead that fuel volumes have increased substantially, 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 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 observations underscore a key separation between profiteering and supply management. When demand increases sharply, as has happened in the wake of the Middle East tensions, retailers may find it challenging to maintain normal inventory levels despite their best efforts. The Association of Petrol Retailers supported this narrative, admitting sporadic supply problems at “a handful of forecourts for one retailer” but insisting that supply across the UK is operating as usual. The body advised drivers that there is no requirement to alter their usual purchasing habits, implying that reports of shortages have been inflated or localised.
Middle East conflicts increasing wholesale prices
The notable surge in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, following armed operations between the US, Israel and Iran approximately a month ago. These political changes have produced substantial volatility in worldwide petroleum markets, pushing wholesale costs upwards and compelling retailers to hand on rises to consumers at fuel stations. The RAC has recorded that unleaded petrol has climbed by 17p per litre since the conflict began, whilst diesel has increased even more dramatically by 35p per litre. Analysts warn that ongoing tensions could force prices up still, notably if supply routes through essential bottlenecks become interrupted.
The scheduling of these cost rises has turned out to be particularly painful for British motorists heading into the Easter holidays. Families organising driving holidays face considerably elevated fuel bills, with the cost of filling a typical family car now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel cars are impacted to an even greater extent, with a full tank now running to over £97, representing a £19 increase. The RAC’s Simon Williams described the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the cumulative impact on family finances during what should 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 |
Crude oil fluctuations plus political tensions
Global oil sectors remain highly responsive to Middle Eastern events, with crude prices mirroring investor worries about possible supply disruptions. The attacks on Iran have heightened doubt about regional stability, leading traders to require risk premiums on petroleum agreements. Whilst current prices remain below the exceptional highs witnessed following Russia’s military incursion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts suggest that any additional escalation in conflict could trigger further price increases, particularly if major transport corridors or production facilities experience disruption.
Public finances and consumer impact
As petrol prices continue their upward trajectory, the government has found itself in an awkward position. Whilst ministers have publicly criticised fuel retailers for potential profiteering, the Treasury has quietly benefited substantially from the surge in pump prices. Excise duty on fuel remains fixed regardless of the market price, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own gains from elevated petrol costs.
The broader economic effects extend beyond domestic spending limits to include inflation pressures throughout the wider economy. Increased fuel expenses pass through supply networks, influencing transport expenses for commodities and services. Small businesses reliant on fuel-intensive operations face particular hardship, with haulage companies and delivery services facing major expense increases. Consumer purchasing capacity declines as households allocate funds toward petrol pumps rather than different expenditures, likely slowing economic expansion. The RAC has counselled vehicle owners to schedule fuel purchases carefully and utilise fuel-price apps to find the cheapest local forecourts, though these approaches deliver modest help against the overall cost escalation.
- Government receives fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise throughout various sectors and industries
- Consumer discretionary spending declines as household budgets prioritise essential fuel purchases
What drivers should do at present
With petrol prices displaying no immediate prospect of falling, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has highlighted the value of planning journeys carefully and utilising price-comparison applications to locate the most affordable petrol stations in their local region. Whilst such approaches provide only marginal gains, they can build substantially over time. Drivers should also consider whether discretionary journeys can be postponed or combined to minimise overall fuel expenditure. For those facing the Easter holidays, arranging travel plans ahead of time and topping up at budget-friendly forecourts before setting out on extended journeys could assist in reducing the effect of higher petrol rates on holiday budgets.
- Use fuel price comparison apps to locate the most affordable nearby petrol stations before refuelling
- Combine journeys where feasible and defer non-essential trips to lower fuel usage
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and reduce total costs
