Petrol prices have exceeded the 150p-per-litre mark for the first time in nearly two years, heightening the argument over whether petrol stations are capitalising on surging oil costs for profit. The average price for standard petrol exceeded the important mark on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The steep rises, which have increased by around £10 to the price of topping up a typical family car in only a month, follow geopolitical tensions in the region that flared up a month ago when the US and Israel carried out operations on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of excessive profit-taking, instead criticising ministers for unjustly blaming at petrol station owners facing limited supply chains.
The 150p barrier breached
The milestone marks a important juncture for British motorists, who have watched fuel costs climb steadily since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre fuel 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 termed the breach of 150p as an unwanted milestone that will sting households already dealing with the rising cost of living. The increases are remarkably poorly timed, arriving just as families start planning their Easter getaways and summer holidays, when demand for fuel typically reaches its highest levels.
Whilst the present prices remain below the record highs witnessed following Russia’s invasion of Ukraine in 2022, the swift increase has revived worries regarding affordability and accessibility. 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 petrol has increased 17p per litre in the identical timeframe. With supply chains already strained and some petrol stations experiencing temporary pump closures caused by unusually high demand, the combination of elevated costs and potential availability issues risks compound difficulties for motorists 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 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 against state claims
The intensifying row over fuel pricing has highlighted a growing rift 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 during the price surge. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the current increase, leaving minimal space for profiteering even if operators were inclined to do so. This mutual recrimination reflects the political importance surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The Competition and Markets Authority has announced it will intensify oversight of the fuel sector, indicating that regulatory oversight will increase. Yet fuel retailers argue this heightened oversight overlooks the fundamental point: they are reacting to real supply limitations and wholesale price movements, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton pointed out that the government itself benefits substantially from fuel duty and value-added tax, possibly gaining more from the price spike than fuel retailers. This remark has introduced an awkward element to the discussion, suggesting that criticism from Westminster may overlook the state’s own financial interests in elevated fuel costs.
Asda’s defence and procurement difficulties
As the UK’s second-biggest fuel supplier, Asda has found itself at the centre of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, emphasising instead that fuel volumes have surged significantly, 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 insisted that Asda has not shut down any petrol stations completely. The company expects affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements underscore a important separation between profiteering and inventory control. When demand spikes dramatically, as took place following the Middle East tensions, retailers can struggle to maintain normal inventory levels despite making every effort. The Association of Petrol Retailers supported this account, admitting sporadic supply problems at “a handful of forecourts for one retailer” but maintaining that overall UK supply is flowing normally. The association counselled drivers that there is no requirement to change their normal shopping behaviour, suggesting that claims of stock problems are overstated or confined to specific areas.
Middle Eastern tensions pushing wholesale costs
The sharp rise in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, subsequent to armed operations between the US, Israel and Iran about a month prior. These geopolitical developments have generated considerable instability in global oil markets, forcing wholesale costs up and compelling retailers to hand on rises to consumers on the forecourt. The RAC has documented that unleaded petrol has climbed by 17p per litre since hostilities started, whilst diesel has increased even more dramatically by 35p per litre. Analysts warn that ongoing tensions could force prices up still, especially should transport corridors through critical chokepoints become disrupted.
The scheduling of these cost rises has proven particularly painful for British motorists heading into the Easter break. Families planning road trips face significantly higher 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 earlier. Diesel cars are impacted even more severely, with a complete fill-up now running to over £97, constituting a £19 rise. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the cumulative impact on family finances during what should be a period 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 volatility and geopolitical factors
Global oil markets remain highly responsive to Middle Eastern events, with crude prices reflecting investor concerns about possible supply disruptions. The attacks on Iran have increased uncertainty about stability in the region, leading traders to demand premium rates on petroleum contracts. Whilst current prices remain below the extraordinary peaks seen after Russia’s invasion of Ukraine—when wholesale costs reached record highs—the trajectory is concerning. Energy analysts indicate that any further escalation in hostilities could trigger further price increases, especially if major transport corridors or manufacturing plants face disruption.
Government revenue and impact on consumers
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 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 pointedly noted this inconsistency, suggesting that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own windfall from higher fuel prices.
The broader financial consequences extend beyond domestic spending limits to include inflationary forces across the entire economy. Elevated petrol prices feed through supply chains, influencing transport expenses for goods and services. SMEs dependent on fuel-intensive operations experience significant difficulty, with freight operators and delivery services absorbing significant cost increases. Consumer purchasing capacity falls as households allocate funds to fuel stations rather than other purchases, likely slowing economic expansion. The RAC has recommended vehicle owners to plan refuelling strategically and utilise fuel-price apps to find the lowest-priced local fuel retailers, though such measures offer only marginal relief against the overall cost escalation.
- 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 non-essential spending declines as family finances focus on essential fuel purchases
What drivers should do now
With petrol prices displaying no immediate prospect of falling, motorists are being urged to take a more calculated approach to refuelling. The RAC has emphasised the importance of planning journeys carefully and leveraging price-comparison platforms to find the lowest-priced fuel retailers in their surrounding neighbourhood. Whilst such measures offer only modest savings, they can add up considerably over time. Drivers should also consider whether non-essential journeys can be postponed or combined 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 undertaking longer drives could assist in reducing the effect of increased fuel costs on holiday budgets.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before filling up
- Merge trips where feasible and defer non-essential trips to reduce consumption
- Fill up at cheaper locations before setting out on longer Easter holiday journeys
- Plan routes carefully to maximise fuel efficiency and reduce total costs
