Petrol prices have exceeded the 150p-per-litre milestone for the first occasion in nearly two years, intensifying the debate over whether petrol stations are exploiting rocketing oil costs for profit. The typical cost for standard petrol exceeded the important mark on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The sharp increases, which have added nearly £10 to the cost of filling a standard family vehicle in just a month, follow geopolitical tensions in the Middle East that erupted 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 blaming ministers for wrongly accusing at forecourt operators struggling with limited supply chains.
The 150p level exceeded
The milestone represents a significant moment for British motorists, who have watched fuel costs climb steadily since the regional tensions in the Middle East began. For a typical family car 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 a month earlier. The RAC has termed the breach of 150p as an unwanted milestone that will sting households already dealing with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families commence planning their Easter getaways and summer holidays, when fuel demand conventionally surges.
Whilst the present prices stay below the peak levels witnessed after Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived concerns about cost and availability. Diesel has performed considerably worse, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s analysis reveals that petrol has increased 17p per litre in the identical timeframe. With supply chains already stretched and some petrol stations reporting temporary pump closures caused by unusually high demand, the mix of elevated costs and potential availability issues risks worsen challenges for drivers throughout the nation.
- Unleaded petrol now 17p more expensive per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since the tensions started
- Filling 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 government accusations
The intensifying row over fuel pricing has exposed a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances outside their remit. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid the pricing spike. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and major chains like Asda have insisted that margins have truly narrowed during the latest surge, leaving minimal space for profiteering even if operators were disposed to act. This blame-shifting reflects the political importance surrounding fuel costs, which significantly affect household budgets and consumer views of government competence.
The CMA has announced it will intensify monitoring of the fuel sector, indicating that regulatory oversight will tighten. Yet retailers contend this heightened oversight overlooks the fundamental point: they are responding to real supply limitations and wholesale price fluctuations, not engineering false shortages for profit. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and value-added tax, potentially earning more from the price surge than fuel retailers. This remark has introduced an uncomfortable dimension to the debate, suggesting that criticism from Westminster may overlook the state’s own financial interests in higher fuel prices.
Asda’s defence and procurement challenges
As the UK’s second-biggest fuel retailer, Asda has positioned itself at the heart 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 surged significantly, 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 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 remarks emphasise a important distinction between profiteering and inventory control. When demand surges unexpectedly, as has occurred after the regional tensions in the Middle East, retailers can struggle to maintain normal inventory levels despite making every effort. The Petrol Retailers Association corroborated this narrative, acknowledging isolated availability issues at “a small number of forecourts for one retailer” but maintaining that the UK’s overall supply is functioning smoothly. The body counselled drivers that there is no reason to alter their usual purchasing habits, indicating that accounts of supply issues have been exaggerated or confined to specific areas.
Middle Eastern instability increasing wholesale prices
The sharp rise in petrol and diesel prices has been firmly tied to escalating tensions in the Middle East, following combat actions between the US, Israel and Iran roughly a month earlier. These geopolitical developments have generated considerable instability in worldwide petroleum markets, forcing wholesale costs up and forcing retailers to transfer costs to consumers on the forecourt. The RAC has recorded that regular fuel has climbed by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that ongoing tensions could push prices higher still, particularly if distribution channels through critical chokepoints become interrupted.
The scheduling of these cost rises has proven especially difficult for British drivers approaching the Easter holidays. Families planning road trips face considerably elevated fuel bills, with the cost of filling a typical family car now exceeding £82 for standard petrol—roughly £9.50 more than just a month earlier. Diesel-powered vehicles are impacted even more severely, with a complete fill-up now costing over £97, representing a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre mark as an “unwelcome milestone,” underlining the cumulative impact on household budgets during what should be a time 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 fluctuations plus political tensions
Global oil markets stay highly sensitive to Middle Eastern events, with crude prices reflecting investor concerns about potential disruptions to supply. The attacks on Iran have heightened uncertainty about regional stability, leading traders to require risk premiums on petroleum agreements. Whilst current prices remain below the exceptional highs seen after 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 additional price spikes, particularly if major shipping routes or production facilities experience disruption.
Public finances and consumer impact
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 surge in pump prices. Excise duty on fuel stays constant 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 deliberately highlighted this contradiction, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own gains from elevated petrol costs.
The broader economic implications go further than individual household budgets to encompass inflationary forces throughout the wider economy. Increased fuel expenses feed through supply networks, impacting delivery costs for products and services. Smaller enterprises reliant on fuel-intensive operations encounter considerable challenges, with transport firms and delivery services bearing substantial cost rises. Consumer purchasing capacity falls as families redirect money into fuel purchases rather than alternative spending, likely slowing economic expansion. The RAC has recommended vehicle owners to organise refuelling efficiently and employ price-checking tools to identify the cheapest local forecourts, though such measures deliver modest help against the wider price increase.
- Government collects fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as transport costs rise across all sectors and industries
- Consumer non-essential spending falls as household budgets prioritise necessary fuel spending
What motorists ought to do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being urged to adopt a more strategic approach to refuelling. The RAC has emphasised the importance of carefully planning journeys and leveraging price-comparison platforms to find the lowest-priced fuel retailers in their local area. Whilst such measures offer only modest savings, they can accumulate meaningfully over time. Drivers ought to also think about whether non-essential journeys can be postponed or combined to reduce overall fuel consumption. For those dealing with the Easter period, booking travel plans in advance and refuelling at lower-cost stations before undertaking longer drives could help mitigate the impact of higher petrol rates on holiday spending.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before refuelling
- Combine journeys where feasible and postpone unnecessary journeys to reduce consumption
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Plan routes carefully to maximise fuel efficiency and reduce total costs
