Petrol prices have breached the 150p-per-litre milestone for the first time in nearly two years, heightening the discussion over whether petrol stations are capitalising on rocketing oil costs for financial gain. The typical cost for standard petrol climbed above the symbolic threshold on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The sharp increases, which have added nearly £10 to the price of topping up a typical family car in just a month, follow regional conflict in the region that erupted a month ago when the US and Israel carried out operations on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of profiteering, instead criticising ministers for unjustly blaming at forecourt operators battling restricted supply networks.
The 150p threshold broken
The milestone marks a important juncture for British motorists, who have watched fuel costs climb steadily since the Middle East tensions began. For a typical family car requiring a 55-litre tank, drivers are now dealing with expenses exceeding £82 for a complete tank of unleaded petrol—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 struggling with the rising cost of living. The increases are remarkably poorly timed, arriving just as families begin planning their Easter trips and summer holidays, when demand for fuel traditionally peaks.
Whilst the present prices remain below the record highs witnessed following Russia’s attack on Ukraine in 2022, the rapid acceleration has revived worries regarding affordability and accessibility. Diesel has struggled even more, climbing 35p per litre since the conflict began and now standing at over 177p. The RAC’s findings shows that petrol has risen 17p per litre in the same period. With distribution networks already stretched and some petrol stations reporting temporary pump closures due to exceptional demand, the combination of higher prices and potential availability issues threatens to worsen challenges for drivers across the country.
- 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 roughly £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retailers challenge against state claims
The intensifying row over fuel pricing has highlighted a deepening split between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances outside their remit. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers amid the cost escalation. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and large retailers like Asda have insisted that margins have genuinely tightened during the latest surge, leaving scant scope for profiteering even if operators were willing to do so. This finger-pointing reflects the political sensitivity surrounding fuel costs, which significantly affect household budgets and consumer views of government competence.
The Competition and Markets Authority has announced it will strengthen oversight of the fuel sector, indicating that regulatory scrutiny will tighten. Yet fuel retailers argue this heightened oversight misses the fundamental point: they are reacting to real supply limitations and wholesale price fluctuations, not creating false shortages for financial gain. Asda’s Allan Leighton highlighted that the government itself benefits substantially from fuel duty and VAT, potentially earning more from the price surge than retailers do. This remark has introduced an uncomfortable dimension to the debate, implying that government criticism may overlook the government’s own financial interests in elevated fuel costs.
Asda’s defence and supply pressures
As the UK’s second largest fuel supplier, Asda has found itself at the heart of the pricing row. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, stressing 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 exceptional customer demand, but insisted that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to return to operation following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s remarks emphasise a critical difference between profit-seeking and supply management. When demand spikes dramatically, as has happened after the Middle East tensions, retailers can find it difficult to maintain normal stock levels despite making every effort. The Association of Petrol Retailers corroborated this account, admitting sporadic supply problems at “a small number of forecourts for one retailer” but asserting that supply across the UK is functioning smoothly. The association counselled drivers that there is no requirement to change their normal buying patterns, indicating that reports of shortages have been exaggerated or isolated.
Middle East instability increasing 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 combat actions between the US, Israel and Iran about a month prior. These political changes have created significant uncertainty in global oil markets, forcing wholesale costs up and forcing retailers to transfer costs to consumers on the forecourt. The RAC has recorded that unleaded petrol has increased by 17p per litre since the conflict began, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that further regional instability could drive prices upward still, especially should transport corridors through key passages become disrupted.
The scheduling of these price increases has proven particularly painful for British drivers approaching the Easter holidays. Families organising road trips encounter significantly higher petrol costs, with the expense of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 more than just a month before. Diesel cars 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 described the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the cumulative impact on family finances during what should 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 volatility and political tensions
Global oil sectors stay highly sensitive to Middle Eastern events, with crude prices reflecting investor worries about potential disruptions to supply. The attacks on Iran have increased doubt about stability in the region, leading traders to demand premium rates on petroleum contracts. Whilst current prices stay below the exceptional highs witnessed following Russia’s invasion of Ukraine—when wholesale costs reached record highs—the trajectory is concerning. Energy analysts suggest that any further escalation in conflict could trigger further price increases, especially if major transport corridors or production facilities experience disruption.
Public finances and consumer impact
As petrol prices maintain their upward climb, the government has been placed in an awkward position. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the spike in fuel costs. Excise duty on fuel remains fixed regardless of the wholesale cost, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this inconsistency, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own windfall from higher fuel prices.
The broader economic implications go further than domestic spending limits to cover price increases throughout the wider economy. Higher fuel costs flow through distribution networks, impacting transport expenses for commodities and services. Small businesses dependent on high-fuel activities face particular hardship, with haulage companies and logistics providers bearing substantial cost rises. Household purchasing power diminishes as people channel spending into fuel purchases rather than other purchases, likely slowing GDP growth. The RAC has advised drivers to organise refuelling efficiently and use price-comparison applications to locate the most affordable nearby petrol stations, though such measures offer only marginal relief against the overall cost escalation.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures intensify as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending declines as family finances focus on essential fuel purchases
What drivers ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being advised to take a more calculated approach to refuelling. The RAC has highlighted the value of mapping out trips methodically and utilising price-comparison applications to find the lowest-priced fuel retailers in their local region. Whilst such approaches provide only marginal gains, they can accumulate meaningfully over time. Drivers may also wish to evaluate whether discretionary journeys can be deferred or consolidated to minimise overall fuel expenditure. For those facing the Easter holidays, arranging travel plans ahead of time and topping up at budget-friendly forecourts before setting out on extended journeys could assist in reducing the effect of elevated pump prices on holiday budgets.
- Use petrol price finder tools to find the most affordable nearby petrol stations before filling up
- Combine journeys where feasible and postpone non-essential trips to reduce consumption
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Plan routes carefully to improve fuel economy and minimise overall expenditure
