Petrol prices have surpassed the 150p-per-litre milestone for the first time in nearly two years, fuelling the argument over whether fuel retailers are taking advantage of soaring oil costs for profit. The average price for unleaded petrol exceeded the important mark on Friday, whilst diesel surged past 177p, according to figures from the RAC. The steep rises, which have added nearly £10 to the cost of filling a typical family car in only a month, follow military tensions in the region that erupted a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has firmly rejected accusations of profiteering, instead blaming ministers for unjustly blaming at forecourt operators battling constrained supply chains.
The 150p level exceeded
The milestone represents a significant moment for British motorists, who have observed fuel costs increase progressively since the Middle East tensions 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 a month earlier. The RAC has characterised the breach of 150p as an unwanted milestone that will sting households already struggling 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 typically reaches its highest levels.
Whilst the current prices remain below the peak levels witnessed after Russia’s attack on Ukraine in 2022, the swift increase has revived concerns about affordability and accessibility. Diesel has struggled even more, climbing 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s findings reveals that unleaded petrol has increased 17p per litre in the identical timeframe. With supply chains already stretched and some forecourts experiencing brief shutdowns due to exceptional demand, the combination of elevated costs and possible supply problems risks compound difficulties for drivers throughout the nation.
- Unleaded fuel now 17p costlier per litre than pre-conflict levels
- Diesel prices have increased by 35p per litre since tensions began
- Filling a family car costs approximately £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back on government accusations
The escalating row over fuel pricing has exposed 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 responded sharply, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and major chains like Asda have insisted that margins have genuinely tightened during the current increase, leaving little room for profiteering even if operators were inclined to do so. This blame-shifting reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The CMA has announced it will strengthen oversight of the petrol market, indicating that regulatory oversight will tighten. Yet retailers contend this heightened oversight misses the core issue: they are reacting to real supply limitations and wholesale price fluctuations, not engineering false shortages for financial gain. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and VAT, possibly gaining more from the price surge than fuel retailers. This remark has added an uncomfortable dimension to the debate, suggesting that government criticism may disregard the state’s own financial interests in higher fuel prices.
Asda’s defense and logistics challenges
As the UK’s second largest fuel retailer, Asda has positioned itself at the centre of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have surged significantly, with demand substantially outstripping available supply. He conceded that a small number of pumps have briefly stopped operating due to unusually high customer demand, but maintained that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to resume service following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s remarks underscore a important difference between profit-seeking and inventory control. When demand increases sharply, as has occurred after the regional tensions in the Middle East, retailers may find it challenging to maintain standard inventory levels in spite of their efforts. The Petrol Retailers Association backed up this claim, admitting isolated availability issues at “a handful of forecourts for one retailer” but asserting that supply across the UK is operating as usual. The body counselled drivers that there is no reason to modify their regular buying patterns, implying that accounts of supply issues have been exaggerated or isolated.
Middle Eastern instability increasing wholesale prices
The marked increase in petrol and diesel prices has been closely connected to rising conflict in the Middle East, subsequent to armed operations between the US, Israel and Iran approximately a month ago. These political changes have created significant uncertainty in global oil markets, forcing wholesale costs up and obliging retailers to pass increases through to consumers at the pump. The RAC has documented that unleaded petrol has risen by 17p per litre since the conflict began, whilst diesel has risen even more sharply by 35p per litre. Analysts alert that ongoing tensions could drive prices upward still, especially should transport corridors through essential bottlenecks become disrupted.
The timing of these cost rises has proven especially difficult for British drivers approaching the Easter break. Families organising driving holidays face significantly higher 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 to an even greater extent, with a complete fill-up now costing over £97, constituting a £19 rise. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the combined effect on household budgets during what ought to 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 fluctuations plus geopolitical factors
Global oil markets remain highly sensitive to Middle Eastern developments, with crude prices reflecting investor concerns about potential supply disruptions. The attacks on Iran have increased uncertainty about regional stability, prompting traders to demand risk premiums on petroleum contracts. Whilst current prices stay below the extraordinary peaks seen after Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts suggest that any further escalation in hostilities could trigger further price increases, especially if major shipping routes or production facilities face disruption.
Public finances and impact on consumers
As petrol prices maintain their upward climb, the government has found itself in an difficult situation. 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 stays constant regardless of the market price, meaning the government receives identical duty per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton pointedly noted this contradiction, suggesting 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 transcend domestic spending limits to encompass inflationary forces throughout the wider economy. Increased fuel expenses feed through supply networks, influencing delivery costs for goods and services. SMEs dependent on high-fuel activities encounter considerable challenges, with freight operators and courier services bearing substantial cost rises. Consumer purchasing capacity falls as families redirect money toward petrol pumps rather than other purchases, likely slowing economic expansion. The RAC has advised motorists to plan refuelling strategically and employ price-checking tools to locate the cheapest local forecourts, though such measures provide limited assistance against the broader price surge.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures increase as transport costs rise across all sectors and industries
- Consumer non-essential spending declines as household budgets focus on necessary fuel spending
What motorists ought to do at present
With petrol prices displaying no immediate prospect of falling, motorists are being urged to implement a more planned strategy to refuelling. The RAC has emphasised the importance of mapping out trips methodically and using price-comparison tools to identify the cheapest forecourts in their local area. Whilst such measures offer only modest savings, they can add up considerably over time. Drivers may also wish to evaluate whether non-essential journeys can be deferred or consolidated to reduce overall fuel consumption. For those facing the Easter holidays, reserving travel arrangements early and refuelling at lower-cost stations before setting out on extended journeys could aid in lessening the burden of elevated pump prices on holiday spending.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before refuelling
- Merge trips where feasible and defer unnecessary journeys to reduce consumption
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and reduce total costs
