Petrol prices have surpassed the 150p-per-litre milestone for the first time in nearly two years, heightening the discussion over whether fuel retailers are capitalising on soaring oil costs for financial gain. The average price for unleaded petrol exceeded the important mark on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The notable jumps, which have added nearly £10 to the price of topping up a standard family vehicle in just a month, follow regional conflict in the Middle East that erupted a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has strongly denied accusations of excessive profit-taking, instead criticising ministers for wrongly accusing at petrol station owners facing restricted supply networks.
The 150p level exceeded
The milestone constitutes a important juncture for British motorists, who have observed 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 dealing with expenses exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has termed the breach of 150p as an unwelcome milestone that will impact families already grappling 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 recorded following Russia’s attack on Ukraine in 2022, the swift increase has revived concerns about affordability and accessibility. 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 petrol has increased 17p per litre in the identical timeframe. With supply chains already stretched and some forecourts experiencing temporary pump closures caused by exceptional demand, the combination of elevated costs and possible supply problems risks worsen challenges for motorists throughout the nation.
- Unleaded petrol 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 approximately £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers challenge on official allegations
The intensifying row over fuel pricing has exposed 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 amid the pricing spike. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and large retailers like Asda have insisted that margins have genuinely tightened during the recent spike, leaving scant scope for profiteering even if operators were disposed to act. This blame-shifting reflects the public concern surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The CMA has announced it will strengthen oversight of the fuel sector, signalling that regulatory scrutiny will tighten. Yet retailers contend this increased scrutiny misses the fundamental point: they are reacting to genuine supply constraints and wholesale price fluctuations, not creating false shortages for financial gain. Asda’s Allan Leighton pointed out that the government itself profits significantly from fuel duty and value-added tax, potentially earning more from the price spike than retailers do. This observation has introduced an uncomfortable dimension to the debate, suggesting that criticism from Westminster may overlook the state’s own economic stakes in higher fuel prices.
Asda’s defense and logistics difficulties
As the UK’s second-biggest fuel supplier, Asda has found 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 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 closed any forecourts entirely. The company expects affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations underscore a critical distinction between profiteering and supply management. When demand surges unexpectedly, as took place after the regional tensions in the Middle East, retailers can struggle to keep up inventory levels despite making every effort. The Association of Petrol Retailers supported this account, recognising sporadic supply problems at “a small number of forecourts for one retailer” but insisting that overall UK supply is functioning smoothly. The association counselled drivers that there is no need to change their normal purchasing habits, implying that accounts of supply issues have been exaggerated or localised.
Middle East conflicts increasing bulk pricing
The marked increase in petrol and diesel prices has been directly linked to mounting instability in the Middle East, in the wake of combat actions between the US, Israel and Iran roughly a month earlier. These regional shifts have created significant uncertainty in global oil markets, driving wholesale prices higher and forcing retailers to hand on rises to consumers on the forecourt. The RAC has documented that unleaded petrol has increased by 17p per litre since the fighting commenced, whilst diesel has increased even more dramatically by 35p per litre. Analysts warn that ongoing tensions could drive prices upward still, notably if supply routes through essential bottlenecks become interrupted.
The timing of these cost rises has proven especially difficult for British motorists approaching the Easter holidays. Families organising road trips encounter significantly higher fuel bills, with the cost of topping up a standard family vehicle now exceeding £82 for standard petrol—roughly £9.50 more than just a month before. 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 ought to be a period 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 political tensions
Global oil sectors remain highly responsive to Middle Eastern events, with crude prices reflecting investor concerns about potential disruptions to supply. The attacks on Iran have heightened doubt about regional stability, leading traders to demand premium rates on petroleum contracts. Whilst current prices stay below the exceptional highs witnessed following Russia’s military incursion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts indicate that any additional escalation in hostilities could spark further price increases, particularly if major transport corridors 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 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 remains fixed regardless of the wholesale cost, 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 blaming retailers for taking advantage of the crisis, the government ought to recognise its own windfall from higher fuel prices.
The wider economic implications go further than domestic spending limits to encompass price increases across all economic sectors. Higher fuel costs pass through supply networks, impacting haulage expenses for goods and services. Small businesses relying on high-fuel activities face particular hardship, with haulage companies and logistics providers absorbing significant cost increases. Household purchasing power diminishes as people channel spending toward petrol pumps rather than alternative spending, potentially dampening economic growth. The RAC has counselled vehicle owners to schedule fuel purchases carefully and employ price-checking tools to find the lowest-priced local fuel retailers, though such measures deliver modest help against the broader price surge.
- Government receives fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures intensify as transport costs rise across all sectors and industries
- Consumer non-essential spending falls as household budgets prioritise necessary fuel spending
What drivers ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being urged to take a more calculated approach to refuelling. The RAC has stressed the significance of carefully planning journeys and using price-comparison tools to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such approaches provide only marginal gains, they can accumulate meaningfully over time. Drivers ought to also think about whether discretionary journeys can be delayed or merged to lower total fuel usage. 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 petrol price finder tools to locate the cheapest local forecourts before filling up
- Combine journeys where feasible and defer non-essential trips to reduce consumption
- Fill up at cheaper locations before setting out on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and reduce total costs
