Petrol prices have exceeded the 150p-per-litre threshold for the first occasion in nearly two years, intensifying the argument over whether petrol stations are taking advantage of soaring oil costs for profit. The average price for standard petrol rose past the important mark on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The steep rises, 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 carried out operations on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of profiteering, instead pointing to ministers for unjustly blaming at forecourt operators battling limited supply chains.
The 150p ceiling surpassed
The milestone marks a important juncture for British motorists, who have observed fuel costs climb steadily since the regional tensions in the Middle East began. For a standard family vehicle 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 four weeks earlier. The RAC has characterised the breach of 150p as an unwanted milestone that will affect households already grappling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families begin planning their Easter getaways and summer breaks, when demand for fuel conventionally surges.
Whilst the present prices stay below the peak levels witnessed following Russia’s invasion of Ukraine in 2022, the swift increase has revived 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 findings shows that petrol has risen 17p per litre in the identical timeframe. With distribution networks already stretched and some forecourts reporting brief shutdowns caused by unusually high demand, the combination of elevated costs and potential availability issues threatens to worsen challenges for motorists across the country.
- Unleaded petrol now 17p costlier per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since the tensions started
- Filling a family car costs roughly £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retailers push back against state claims
The escalating row over fuel pricing has revealed a growing rift between the government and forecourt operators, who argue they are being wrongly targeted for circumstances beyond their control. Ministers have adopted increasingly combative 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 counterproductive. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the latest surge, leaving little room for profiteering even if operators were willing to do so. This blame-shifting reflects the political sensitivity surrounding fuel costs, which materially influence household budgets and consumer views of government competence.
The Competition and Markets Authority has stated it will intensify oversight of the petrol market, signalling 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 movements, not engineering false shortages for profit. Asda’s Allan Leighton highlighted that the state 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 government criticism may overlook the government’s own financial interests 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 firmly denied suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have surged significantly, with demand far exceeding available supply. He conceded that a small number of pumps have briefly stopped operating due to exceptional customer demand, but maintained 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 highlight a critical distinction between profit-seeking and inventory control. When demand spikes dramatically, as has occurred following the regional tensions in the Middle East, retailers can struggle to maintain normal stock levels despite their best efforts. The Petrol Retailers Association corroborated this claim, recognising sporadic supply problems at “a handful of forecourts for one retailer” but asserting that overall UK supply is operating as usual. The association counselled drivers that there is no requirement to alter their usual buying patterns, implying that accounts of supply issues are overstated or confined to specific areas.
Middle Eastern conflicts driving wholesale prices
The notable surge in petrol and diesel prices has been directly linked to mounting instability in the Middle East, subsequent to combat actions between the US, Israel and Iran about a month prior. These geopolitical developments have produced substantial volatility in international energy markets, forcing wholesale costs up and compelling retailers to transfer costs to consumers on the forecourt. The RAC has documented that standard petrol has climbed by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that ongoing tensions could drive prices upward still, especially should transport corridors through key passages become interrupted.
The timing of these cost rises has proven especially difficult for British drivers approaching the Easter break. Families planning driving holidays encounter considerably elevated 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-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 described the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the cumulative impact on family finances during what ought to 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 political tensions
Global oil sectors stay highly sensitive to Middle Eastern developments, with crude prices reflecting investor worries about potential disruptions to supply. The attacks on Iran have increased doubt about regional stability, prompting traders to require risk premiums on petroleum contracts. Whilst current prices remain below the exceptional highs witnessed following Russia’s invasion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts indicate that any further escalation in hostilities could spark additional price spikes, particularly if major transport corridors or manufacturing plants face disruption.
Government revenue and impact on consumers
As petrol prices continue their upward trajectory, 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 collects the same tax per litre no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this contradiction, suggesting that before accusing retailers of exploiting the crisis, the government ought to recognise its own gains from elevated petrol costs.
The wider economic implications extend beyond domestic spending limits to include inflation pressures across the entire economy. Elevated petrol prices pass through supply networks, influencing transport expenses for commodities and services. SMEs relying on fuel-intensive operations face particular hardship, with freight operators and logistics providers facing major expense increases. Consumer purchasing capacity declines as families redirect money to fuel stations rather than other purchases, potentially dampening economic expansion. The RAC has advised motorists to organise refuelling efficiently and use price-comparison applications to locate the lowest-priced local fuel retailers, though such measures provide limited assistance against the broader price surge.
- Government collects fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures intensify as shipping expenses rise throughout various sectors and industries
- Consumer non-essential spending falls as household budgets focus on essential fuel purchases
What drivers ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has highlighted the value of mapping out trips methodically and leveraging price-comparison platforms to identify the cheapest forecourts in their surrounding neighbourhood. Whilst such approaches provide only marginal gains, they can accumulate meaningfully over time. Drivers may also wish to evaluate whether unnecessary trips can be deferred or consolidated to minimise overall fuel expenditure. For those preparing for the Easter break, arranging travel plans ahead of time and topping up at budget-friendly forecourts before undertaking longer drives could help mitigate the impact of increased fuel costs on holiday spending.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before filling up
- Merge trips where possible and defer 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 reduce total costs
