Petrol prices have breached the 150p-per-litre threshold for the first occasion in nearly two years, intensifying the argument over whether petrol stations are exploiting soaring oil costs for financial gain. The average price for standard petrol rose past the symbolic threshold on Friday, whilst diesel surged past 177p, according to figures from the RAC. The notable jumps, which have added nearly £10 to the price of topping up a typical family car in only a month, follow geopolitical tensions in the Middle East that broke out a month ago when the US and Israel conducted strikes on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of excessive profit-taking, instead criticising ministers for unfairly “pointing the finger” at petrol station owners facing limited supply chains.
The 150p ceiling surpassed
The milestone constitutes a significant moment for British motorists, who have seen fuel costs climb steadily since the Middle East tensions began. For a typical family car requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a full tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has termed the breach of 150p as an unwelcome milestone that will affect households already grappling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families commence planning their Easter trips and summer breaks, when demand for fuel typically reaches its highest levels.
Whilst the current prices remain below the record highs witnessed after Russia’s attack on Ukraine in 2022, the rapid acceleration has reignited worries regarding affordability and accessibility. Diesel has performed considerably worse, climbing 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s analysis shows that petrol has risen 17p per litre in the identical timeframe. With supply chains already stretched and some forecourts reporting brief shutdowns due to exceptional demand, the mix of higher prices and potential availability issues threatens to worsen challenges for drivers throughout the nation.
- Unleaded fuel now 17p more expensive per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since tensions began
- Filling up a family car costs roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back on state claims
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 amid the price surge. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the recent spike, leaving little room for profiteering even if operators were willing to do so. This blame-shifting reflects the public concern 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 petrol market, indicating that regulatory oversight will increase. Yet fuel retailers contend this increased scrutiny misses the core issue: they are reacting to real supply limitations and wholesale price movements, not creating artificial scarcity 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 spike than fuel retailers. This remark has added an awkward element to the discussion, implying that criticism from Westminster may disregard the state’s own financial interests in higher fuel prices.
Asda’s defence and supply pressures
As the UK’s second largest fuel supplier, Asda has found itself at the centre of the pricing row. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, stressing instead that fuel volumes have increased substantially, with demand far exceeding available supply. He conceded that a small number of pumps have temporarily gone out of service due to exceptional customer demand, but maintained that Asda has not closed any forecourts entirely. The company expects affected pumps to resume service following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements emphasise a key difference between profiteering and inventory control. When demand spikes dramatically, as has happened in the wake of the Middle East tensions, retailers may find it challenging to maintain normal inventory levels despite making every effort. The Association of Petrol Retailers supported this narrative, admitting isolated availability issues at “a handful of forecourts for one retailer” but insisting that supply across the UK is flowing normally. The association advised drivers that there is no reason to alter their usual purchasing habits, suggesting that accounts of supply issues have been inflated or confined to specific areas.
Middle East instability increasing wholesale costs
The marked increase in petrol and diesel prices has been closely connected to escalating tensions in the Middle East, in the wake of combat actions between the US, Israel and Iran about a month prior. These geopolitical developments have generated considerable instability in worldwide petroleum markets, driving wholesale prices higher and compelling retailers to pass increases through to consumers on the forecourt. The RAC has recorded that standard petrol has increased by 17p per litre since the fighting commenced, whilst diesel has risen even more sharply by 35p per litre. Analysts caution that additional geopolitical disruption could force prices up still, notably if transport corridors through essential bottlenecks become blocked.
The scheduling of these cost rises has turned out to be especially difficult for British drivers heading into the Easter break. Families organising road trips encounter significantly higher petrol costs, with the expense of topping up a standard family vehicle now surpassing £82 for standard petrol—roughly £9.50 higher than just a month before. Diesel-powered vehicles are impacted even more severely, with a complete fill-up now running to over £97, representing a £19 increase. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the combined effect on household budgets during what ought to 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 |
Oil market fluctuations plus political tensions
Global oil markets stay highly responsive to Middle Eastern developments, with crude prices mirroring investor concerns about potential supply disruptions. The attacks on Iran have increased uncertainty about stability in the region, prompting traders to require risk premiums on petroleum contracts. Whilst current prices remain below the extraordinary peaks witnessed following Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is concerning. Energy analysts suggest that any further escalation in conflict could spark further price increases, especially if major transport corridors or manufacturing plants face disruption.
Government revenue 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 possible price gouging, the Treasury has discreetly gained considerably from the spike in fuel costs. Excise duty on fuel stays constant regardless of the wholesale cost, meaning the government receives identical duty per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own windfall from higher fuel prices.
The more extensive economic implications extend beyond personal family finances to cover inflation pressures across the entire economy. Increased fuel expenses pass through supply networks, influencing haulage expenses for goods and services. Small businesses relying on fuel-heavy processes experience significant difficulty, with freight operators and delivery services bearing substantial cost rises. Household purchasing power falls as households allocate funds into fuel purchases rather than alternative spending, possibly reducing GDP growth. The RAC has recommended drivers to plan refuelling strategically and utilise fuel-price apps to identify the cheapest local forecourts, though these steps deliver modest help against the wider price increase.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures increase as transport costs rise throughout various sectors and industries
- Consumer discretionary spending declines as family finances prioritise essential fuel purchases
What motorists should do now
With petrol prices showing no immediate signs of retreating, motorists are being urged 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 area. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers may also wish to evaluate whether non-essential journeys can be delayed or merged to minimise overall fuel expenditure. For those preparing for the Easter break, booking travel plans in advance and refuelling at lower-cost stations before setting out on extended journeys could help mitigate the impact of higher petrol rates on vacation finances.
- Use petrol price finder tools to locate the cheapest local forecourts before refuelling
- Combine journeys where possible and defer unnecessary journeys to reduce consumption
- Fill up at cheaper locations before setting out on longer Easter holiday journeys
- Map your journey with care to maximise fuel efficiency and minimise overall expenditure
