Petrol prices have surpassed the 150p-per-litre milestone for the first time in almost two years, intensifying the argument over whether petrol stations are taking advantage of surging oil costs for profit. The average price for unleaded petrol rose past the symbolic threshold on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The sharp increases, which have increased by around £10 to the price of topping up a typical family car in just a month, follow military tensions in the region that erupted a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has firmly rejected accusations of excessive profit-taking, instead blaming ministers for unfairly “pointing the finger” at forecourt operators battling limited supply chains.
The 150p threshold broken
The milestone represents a important juncture for British motorists, who have observed fuel costs increase progressively since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre fuel tank, drivers are now dealing with expenses exceeding £82 for a full tank of unleaded petrol—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 cost-of-living crisis. 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 stay below the record highs witnessed after Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived concerns about cost and availability. Diesel has fared even worse, climbing 35p per litre since the conflict began and now standing at over 177p. The RAC’s findings shows that unleaded petrol has risen 17p per litre in the same period. With supply chains already stretched and some forecourts experiencing temporary pump closures due to unusually high demand, the mix of elevated costs and possible supply problems threatens to compound difficulties for motorists across the country.
- Unleaded fuel now 17p costlier per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since tensions began
- Filling a family car costs approximately £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers push back on state claims
The growing row over fuel pricing has revealed a deepening split 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 responded sharply, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and large retailers like Asda have insisted that margins have truly narrowed during the recent spike, leaving minimal space for profiteering even if operators were inclined to do so. This finger-pointing reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and consumer views of government competence.
The CMA has announced it will strengthen oversight of the petrol market, indicating that regulatory scrutiny will tighten. Yet fuel retailers contend this heightened oversight overlooks the core issue: they are responding to real supply limitations and wholesale price movements, not creating false shortages for financial gain. Asda’s Allan Leighton pointed out that the government itself benefits substantially from fuel duty and VAT, possibly gaining more from the price spike than fuel retailers. This observation has introduced an awkward element to the debate, implying that government criticism may overlook the government’s own financial interests in elevated fuel costs.
Asda’s defense and logistics pressures
As the UK’s second largest fuel supplier, Asda has found itself at the centre of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is taking advantage of the situation, stressing instead that fuel volumes have increased substantially, with demand substantially outstripping available supply. He conceded that a small number of pumps have briefly stopped operating due to exceptional customer demand, but maintained that Asda has not shut down any petrol stations completely. The company anticipates the affected pumps to resume service following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations underscore a key distinction between profit-seeking and supply management. When demand increases sharply, as has occurred following the regional tensions in the Middle East, retailers can struggle to keep up inventory levels despite their best efforts. The Association of Petrol Retailers supported this narrative, recognising isolated availability issues at “a handful of forecourts for one retailer” but maintaining that supply across the UK is flowing normally. The association counselled drivers that there is no requirement to modify their regular buying patterns, indicating that reports of shortages have been exaggerated or localised.
Middle Eastern tensions driving bulk pricing
The marked increase in petrol and diesel prices has been directly linked to rising conflict in the Middle East, subsequent to armed operations between the US, Israel and Iran roughly a month earlier. These geopolitical developments have created significant uncertainty in worldwide petroleum markets, driving wholesale prices higher and obliging retailers to pass increases through to consumers on the forecourt. The RAC has noted that standard petrol has risen by 17p per litre since the fighting commenced, whilst diesel has climbed even more steeply by 35p per litre. Analysts caution that further regional instability could push prices higher still, particularly if distribution channels through critical chokepoints become interrupted.
The timing of these price increases has proven particularly painful for British motorists approaching the Easter break. Families planning driving holidays face considerably elevated petrol costs, with the expense 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 impacted even more severely, with a full tank now costing over £97, constituting a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the cumulative impact on household budgets 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 political tensions
Global oil sectors stay highly sensitive to Middle Eastern developments, with crude prices mirroring investor worries about potential disruptions to supply. The attacks on Iran have heightened uncertainty about stability in the region, leading traders to require premium rates on petroleum contracts. Whilst current prices stay below the exceptional highs seen after Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts indicate that any further escalation in hostilities could spark additional price spikes, particularly if major shipping routes or production facilities experience disruption.
Public finances and impact on consumers
As petrol prices maintain their upward climb, the government has found itself in an awkward position. Whilst ministers have publicly criticised fuel retailers for potential profiteering, the Treasury has discreetly gained considerably from the spike in fuel costs. Excise duty on fuel remains fixed regardless of the market price, meaning the government receives identical duty per litre no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this contradiction, suggesting that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own gains from elevated petrol costs.
The more extensive financial consequences transcend individual household budgets to encompass inflationary forces throughout the wider economy. Higher fuel costs flow through supply networks, impacting delivery costs for products and services. Smaller enterprises relying on high-fuel activities face particular hardship, with haulage companies and delivery services facing major expense increases. Consumer purchasing capacity diminishes as families redirect money to fuel stations rather than other purchases, likely slowing GDP growth. The RAC has recommended motorists to schedule fuel purchases carefully and employ price-checking tools to find the lowest-priced local fuel retailers, though such measures offer only marginal relief against the broader price surge.
- Government collects set excise tax 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 falls as family finances focus on necessary fuel spending
What motorists ought to do now
With petrol prices displaying no immediate prospect of falling, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has stressed the significance of carefully planning journeys and leveraging price-comparison platforms to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers should also consider whether non-essential journeys can be postponed or combined to lower total fuel usage. For those facing the Easter holidays, reserving travel arrangements early and topping up at budget-friendly forecourts before undertaking longer drives could assist in reducing the effect of elevated pump prices on holiday budgets.
- Use petrol price finder tools to locate the cheapest local forecourts before refuelling
- Combine journeys where possible and postpone non-essential trips to lower fuel usage
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Map your journey with care to maximise fuel efficiency and minimise overall expenditure
