Petrol prices have surpassed the 150p-per-litre mark for the first time in almost two years, intensifying the discussion over whether petrol stations are capitalising on soaring oil costs for profit. The average price for standard petrol rose past the symbolic threshold on Friday, whilst diesel surged past 177p, based on figures from the RAC. The steep rises, which have increased by around £10 to the cost of filling a standard family vehicle in just a month, follow military tensions in the region that flared up a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of excessive profit-taking, instead criticising ministers for unjustly blaming at forecourt operators struggling with restricted supply networks.
The 150p threshold broken
The milestone marks a significant moment 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 tank, drivers are now dealing with expenses exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwelcome milestone that will sting households already struggling 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 stay below the record highs recorded after Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited concerns about cost and availability. Diesel has performed considerably worse, rising 35p per litre since the conflict began and now standing at over 177p. The RAC’s analysis reveals that petrol has increased 17p per litre in the same period. With distribution networks already stretched and some petrol stations reporting temporary pump closures due to unusually high demand, the mix of higher prices and possible supply problems threatens to compound difficulties for motorists 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 roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers challenge against official allegations
The growing row over fuel pricing has revealed a growing rift between the government and forecourt operators, who argue they are being unjustly blamed for circumstances outside their remit. Ministers have adopted more aggressive 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 self-defeating. The Petrol Retailers Association and leading operators like Asda have insisted that margins have actually compressed during the current increase, leaving little room for profiteering even if operators were disposed to act. This blame-shifting reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The Competition and Markets Authority has stated it will intensify oversight of the fuel sector, signalling that regulatory scrutiny will increase. Yet retailers contend this heightened oversight misses the core issue: they are reacting to genuine supply constraints and wholesale price movements, not creating false shortages for financial gain. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and value-added tax, possibly gaining more from the price surge than retailers do. This remark has introduced an uncomfortable dimension to the discussion, suggesting that criticism from Westminster may disregard the state’s own economic stakes in elevated fuel costs.
Asda’s defence and procurement pressures
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 taking advantage of the situation, 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 anticipates the affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements underscore a critical separation between profiteering and supply management. When demand increases sharply, as has occurred in the wake of the regional tensions in the Middle East, retailers can find it difficult to maintain normal inventory levels despite their best efforts. The Association of Petrol Retailers backed up this account, recognising sporadic supply problems at “a handful of forecourts for one retailer” but asserting that overall UK supply is flowing normally. The association recommended drivers that there is no need to modify their regular purchasing habits, implying that reports of shortages have been inflated or confined to specific areas.
Middle East tensions increasing wholesale costs
The notable surge in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, in the wake of military strikes between the US, Israel and Iran approximately a month ago. These geopolitical developments have created significant uncertainty in international energy markets, pushing wholesale costs upwards and forcing retailers to hand on rises to consumers at the pump. The RAC has recorded that unleaded petrol has climbed by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts alert that further regional instability could force prices up still, especially should supply routes through critical chokepoints become interrupted.
The scheduling of these price increases has proven particularly painful for British motorists approaching the Easter holidays. Families organising road trips face significantly higher petrol costs, with the cost of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel-powered vehicles are impacted to an even greater extent, with a full tank now running to 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 combined effect 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 |
Oil market fluctuations plus geopolitical factors
Global oil markets stay highly sensitive to Middle Eastern events, with crude prices reflecting investor worries about potential disruptions to supply. The attacks on Iran have heightened uncertainty about regional stability, leading traders to require premium rates on petroleum contracts. Whilst current prices stay 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 additional escalation in hostilities could spark further price increases, particularly if major shipping routes or production facilities experience disruption.
Government revenue and impact on consumers
As petrol prices maintain their upward climb, the government has been placed 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 stays constant regardless of the market price, meaning the government receives identical duty per litre no matter if petrol costs 120p or 150p. Asda’s chief executive Allan Leighton pointedly noted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own gains from elevated petrol costs.
The broader financial consequences extend beyond personal family finances to include inflationary forces across all economic sectors. Elevated petrol prices feed through supply chains, affecting delivery costs for products and services. SMEs dependent on high-fuel activities encounter considerable challenges, with haulage companies and logistics providers facing major expense increases. Household purchasing power falls as families redirect money toward petrol pumps rather than alternative spending, potentially dampening GDP growth. The RAC has counselled vehicle owners to schedule fuel purchases carefully and utilise fuel-price apps to locate the lowest-priced local fuel retailers, though these steps offer only marginal relief against the broader price surge.
- Government receives fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise across all sectors and industries
- Consumer discretionary spending falls as family finances prioritise necessary fuel spending
What drivers ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being encouraged to take a more calculated approach to refuelling. The RAC has emphasised the importance of carefully planning journeys and utilising price-comparison applications to find the lowest-priced fuel retailers in their local area. Whilst such steps deliver only limited savings, they can add up considerably over time. Drivers ought to also think about whether discretionary journeys can be delayed or merged to lower total fuel usage. For those facing the Easter holidays, booking travel plans in advance and topping up at budget-friendly forecourts before embarking on longer trips could help mitigate the impact of higher petrol rates on holiday spending.
- Use petrol price finder tools to find the cheapest local forecourts before filling up
- Merge trips where possible and defer unnecessary journeys to reduce consumption
- Fill up at more affordable stations before embarking on extended Easter break trips
- Plan routes carefully to improve fuel economy and minimise overall expenditure
