Petrol prices have exceeded the 150p-per-litre mark for the first time in nearly two years, heightening the debate over whether petrol stations are exploiting surging oil costs for profit. The typical cost for standard petrol climbed above the important mark on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The sharp increases, which have increased by around £10 to the cost of filling a standard family vehicle in only a month, follow military tensions in the Middle East that flared up a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman 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 marks a significant moment for British motorists, who have seen fuel costs increase progressively since the Middle East tensions 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 characterised the breach of 150p as an unwelcome milestone that will impact families already struggling with the rising cost of living. The increases are particularly poorly timed, arriving just as families begin planning their Easter getaways and summer breaks, when demand for fuel traditionally peaks.
Whilst the current prices remain below the record highs witnessed following Russia’s attack on Ukraine in 2022, the swift increase has revived worries regarding cost and availability. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s analysis shows that petrol has increased 17p per litre in the identical timeframe. With distribution networks already strained and some petrol stations reporting brief shutdowns caused by unusually high demand, the combination of elevated costs and potential availability issues risks compound difficulties for motorists throughout the nation.
- Unleaded fuel now 17p costlier per litre than levels before the conflict
- 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
Retailers challenge against government accusations
The growing row over fuel pricing has highlighted a widening divide between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers during the cost escalation. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have genuinely tightened during the latest surge, leaving minimal space for profiteering even if operators were disposed to act. This blame-shifting reflects the public concern surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The CMA has announced it will strengthen oversight of the petrol market, signalling that regulatory oversight will increase. Yet retailers contend this heightened oversight misses the core issue: they are responding to real supply limitations and wholesale price movements, not engineering false shortages for financial gain. Asda’s Allan Leighton pointed out that the government itself benefits substantially from fuel duty and VAT, potentially earning more from the price surge than fuel retailers. This remark has added an awkward element to the discussion, implying that criticism from Westminster may overlook the government’s own economic stakes in elevated fuel costs.
Asda’s defence and procurement challenges
As the UK’s second-biggest fuel retailer, Asda has found itself at the heart of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, stressing 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 insisted that Asda has not shut down any petrol stations completely. The company expects affected pumps to return to operation following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s observations underscore a critical separation between profit-seeking and inventory control. When demand surges unexpectedly, as took place after the regional tensions in the Middle East, retailers can find it difficult to keep up inventory levels despite making every effort. The Petrol Retailers Association backed up this account, recognising sporadic supply problems at “a handful of forecourts for one retailer” but maintaining that overall UK supply is flowing normally. The association advised drivers that there is no requirement to modify their regular purchasing habits, indicating that reports of shortages have been inflated or confined to specific areas.
Middle Eastern conflicts driving bulk pricing
The notable surge in petrol and diesel prices has been closely connected to mounting instability in the Middle East, in the wake of armed operations between the US, Israel and Iran roughly a month earlier. These political changes have produced substantial volatility in global oil markets, forcing wholesale costs up and compelling retailers to transfer costs to consumers at fuel stations. The RAC has recorded that standard petrol has climbed by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts caution that further regional instability could force prices up still, notably if supply routes through key passages become blocked.
The timing of these cost rises has proven especially difficult for British drivers heading into the Easter break. Families organising driving holidays encounter significantly higher petrol costs, with the cost of filling a typical family car now surpassing £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel cars are impacted to an even greater extent, with a full tank now costing over £97, representing a £19 increase. The RAC’s Simon Williams described the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the combined effect on household budgets 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 |
Crude oil fluctuations plus geopolitical factors
Global oil sectors remain highly responsive to Middle Eastern developments, with crude prices mirroring investor worries about possible supply disruptions. The attacks on Iran have heightened uncertainty about regional stability, prompting traders to demand risk premiums on petroleum agreements. Whilst current prices stay below the exceptional highs seen after Russia’s military incursion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts indicate that any additional escalation in conflict could trigger additional price spikes, especially if major transport corridors or production facilities experience disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has been placed in an awkward position. Whilst government officials have openly condemned 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 executive chairman Allan Leighton pointedly noted this inconsistency, 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 go further than domestic spending limits to cover inflationary forces across the entire economy. Elevated petrol prices feed through supply chains, influencing haulage expenses for commodities and services. SMEs relying on fuel-heavy processes experience significant difficulty, with transport firms and logistics providers facing major expense increases. Consumer spending power declines as families redirect money toward petrol pumps rather than different expenditures, likely slowing economic expansion. The RAC has advised drivers to schedule fuel purchases carefully and use price-comparison applications to locate the most affordable nearby petrol stations, though such measures deliver modest help against the wider price increase.
- Government collects set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending falls as family finances focus on necessary fuel spending
What drivers should do now
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 mapping out trips methodically and leveraging price-comparison platforms to identify the cheapest forecourts in their local region. Whilst such measures offer only modest savings, they can build substantially over time. Drivers should also consider whether unnecessary trips can be postponed or combined to lower total fuel usage. For those preparing for the Easter break, arranging travel plans ahead of time and filling up at cheaper locations before embarking on longer trips could help mitigate the impact of increased fuel costs on vacation finances.
- Use petrol price finder tools to find the most affordable nearby petrol stations before refuelling
- Merge trips where possible and postpone non-essential trips to reduce consumption
- Fill up at more affordable stations before setting out on extended Easter break trips
- Plan routes carefully to improve fuel economy and minimise overall expenditure
