Petrol prices have surpassed the 150p-per-litre mark for the first time in nearly two years, fuelling the argument over whether petrol stations are capitalising on rocketing oil costs for financial gain. The average price for standard petrol climbed above the important mark on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The steep rises, which have pushed up by £10 to the price of topping up a standard family vehicle in just 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 executive chairman Allan Leighton has strongly denied accusations of profiteering, instead criticising ministers for unjustly blaming at petrol station owners facing constrained supply chains.
The 150p ceiling surpassed
The milestone marks 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 petrol—nearly £10 more than just four weeks earlier. The RAC has characterised the breach of 150p as an unwanted milestone that will impact families already grappling with the rising cost of living. The increases are remarkably poorly timed, arriving just as families start planning their Easter trips and summer holidays, when fuel demand traditionally peaks.
Whilst the present prices remain below the record highs recorded after Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived concerns about affordability and accessibility. Diesel has fared even worse, climbing 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s findings shows that petrol has increased 17p per litre in the identical timeframe. With distribution networks already stretched and some forecourts reporting temporary pump closures caused by unusually high demand, the mix of higher prices and potential availability issues threatens to worsen challenges for drivers across the country.
- Unleaded petrol now 17p more expensive per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since tensions began
- 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 official allegations
The escalating row over fuel pricing has highlighted a growing rift between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances beyond their control. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers throughout the price surge. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and major chains like Asda have insisted that margins have actually compressed during the latest surge, leaving little room for profiteering even if operators were willing to do so. This mutual recrimination reflects the public concern surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The Competition and Markets Authority has stated it will strengthen oversight of the fuel sector, indicating that regulatory scrutiny will increase. Yet retailers contend this increased scrutiny overlooks the core issue: they are reacting to real supply limitations and wholesale price movements, not creating artificial scarcity for profit. Asda’s Allan Leighton highlighted that the government itself benefits substantially from fuel duty and value-added tax, potentially earning more from the price surge than retailers do. This observation has added an uncomfortable dimension to the debate, implying that government criticism may disregard the government’s own financial interests in higher fuel prices.
Asda’s defence and supply difficulties
As the UK’s second largest fuel supplier, Asda has positioned itself at the heart 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 increased substantially, with demand substantially outstripping available supply. He conceded that a small number of pumps have temporarily gone out of service due to unusually high customer demand, but maintained that Asda has not closed any forecourts entirely. The company expects affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements underscore a important distinction between profit-seeking and inventory control. When demand surges unexpectedly, as has happened following the regional tensions in the Middle East, retailers may find it challenging to maintain standard inventory levels despite their best efforts. The Petrol Retailers Association backed up this claim, admitting sporadic supply problems at “a handful of forecourts for one retailer” but insisting that overall UK supply is functioning smoothly. The body recommended drivers that there is no need to change their normal buying patterns, indicating that claims of stock problems have been exaggerated or localised.
Middle Eastern instability increasing wholesale costs
The marked increase in petrol and diesel prices has been firmly tied to escalating tensions in the Middle East, following military strikes between the US, Israel and Iran roughly a month earlier. These regional shifts have created significant uncertainty in worldwide petroleum markets, pushing wholesale costs upwards and obliging 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 push prices higher still, especially should transport corridors through key passages become disrupted.
The timing of these price increases has proven particularly painful for British motorists approaching the Easter break. Families organising road trips encounter significantly higher fuel bills, with the cost of topping up a standard family vehicle now surpassing £82 for unleaded petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles are affected to an even greater extent, with a complete fill-up now running to over £97, representing a £19 increase. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the combined effect 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 |
Oil market fluctuations plus political tensions
Global oil markets remain 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, leading traders to demand risk premiums on petroleum contracts. Whilst current prices stay below the exceptional highs seen after Russia’s military incursion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts indicate that any further escalation in conflict could trigger additional price spikes, especially if major transport corridors or production facilities experience disruption.
Government revenue and impact on consumers
As petrol prices keep rising steadily, the government has found itself in an awkward position. Whilst government officials have openly condemned fuel retailers for potential profiteering, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel stays constant regardless of the market price, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this contradiction, proposing that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own windfall from higher fuel prices.
The more extensive economic effects go further than domestic spending limits to include inflationary forces across the entire economy. Increased fuel expenses flow through supply chains, affecting haulage expenses for commodities and services. Small businesses reliant on fuel-heavy processes face particular hardship, with haulage companies and courier services absorbing significant cost increases. Consumer spending power falls as families redirect money toward petrol pumps rather than alternative spending, likely slowing economic growth. The RAC has recommended motorists to organise refuelling efficiently and employ price-checking tools to locate 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 shipping expenses rise throughout various sectors and industries
- Consumer non-essential spending declines as household budgets prioritise necessary fuel spending
What drivers should do at present
With petrol prices displaying no immediate prospect of falling, motorists are being advised to adopt a more strategic approach to refuelling. The RAC has emphasised the importance 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 add up considerably over time. Drivers may also wish to evaluate whether discretionary journeys can be postponed or combined to reduce overall fuel consumption. For those facing the Easter holidays, booking travel plans in advance and topping up at budget-friendly forecourts before embarking on longer trips could assist in reducing the effect of higher petrol rates on holiday spending.
- 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 lower fuel usage
- Fill up at more affordable stations before embarking on longer Easter holiday journeys
- Map your journey with care to maximise fuel efficiency and reduce total costs
