Petrol prices have surpassed the 150p-per-litre mark for the first occasion in nearly two years, fuelling the argument over whether petrol stations are capitalising on soaring oil costs for profit. The typical cost for unleaded petrol climbed above the symbolic threshold on Friday, whilst diesel surged past 177p, according to figures from the RAC. The steep rises, which have increased by around £10 to the price of topping up a typical family car in only a month, follow geopolitical tensions in the Middle East that flared up a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has firmly rejected accusations of profiteering, instead pointing to ministers for unfairly “pointing the finger” at petrol station owners battling limited supply chains.
The 150p barrier breached
The milestone represents a important juncture for British motorists, who have seen fuel costs increase progressively since the regional tensions in the Middle East 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 petrol—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwanted 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 trips and summer holidays, when demand for fuel typically reaches its highest levels.
Whilst the current prices stay below the record highs recorded following Russia’s attack on Ukraine in 2022, the rapid acceleration has revived worries regarding cost and availability. Diesel has fared even worse, climbing 35p per litre since the conflict began and now reaching over 177p. The RAC’s findings reveals that unleaded petrol has risen 17p per litre in the same period. With supply chains already stretched and some petrol stations reporting temporary pump closures due to unusually high demand, the combination of elevated costs and possible supply problems risks worsen challenges for drivers throughout the nation.
- Unleaded fuel now 17p more expensive per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since tensions began
- 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 challenge on state claims
The escalating row over fuel pricing has exposed a widening divide between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances outside their remit. 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 self-defeating. The Petrol Retailers Association and major chains 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 blame-shifting reflects the political sensitivity surrounding fuel costs, which significantly affect household budgets and consumer views of government competence.
The CMA has stated it will intensify oversight of the petrol market, signalling that regulatory scrutiny will increase. Yet fuel retailers contend this increased scrutiny overlooks the fundamental point: they are responding to real supply limitations and wholesale price movements, not creating artificial scarcity for profit. Asda’s Allan Leighton highlighted that the government itself benefits substantially from fuel duty and VAT, possibly gaining more from the price surge than fuel retailers. This observation has added an uncomfortable dimension to the debate, implying that criticism from Westminster may disregard the government’s own economic stakes in elevated fuel costs.
Asda’s defense and logistics challenges
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 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 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 anticipates the affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements highlight a key distinction between profit-seeking and inventory control. When demand spikes dramatically, as took place following the Middle East tensions, retailers can struggle to maintain standard inventory levels despite making every effort. The Association of Petrol Retailers backed up this claim, acknowledging isolated availability issues at “a handful of forecourts for one retailer” but maintaining that overall UK supply is functioning smoothly. The body advised drivers that there is no requirement to modify their regular purchasing habits, indicating that reports of shortages are overstated or localised.
Middle East tensions driving bulk pricing
The marked increase in petrol and diesel prices has been firmly tied to escalating tensions in the Middle East, subsequent to armed operations between the US, Israel and Iran roughly a month earlier. These regional shifts have created significant uncertainty in worldwide petroleum markets, pushing wholesale costs upwards and obliging retailers to pass increases through to consumers at fuel stations. The RAC has recorded that standard petrol has climbed by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts caution that further regional instability could force prices up still, especially should distribution channels through key passages become disrupted.
The timing of these price increases has turned out to be particularly painful for British motorists heading into the Easter holidays. Families planning road trips face considerably elevated fuel bills, with the expense of filling a typical family car now surpassing £82 for standard petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles are affected even more severely, with a complete fill-up now costing over £97, representing a £19 rise. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” underlining the cumulative impact on family finances during what should 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 volatility and geopolitical factors
Global oil markets stay highly responsive to Middle Eastern developments, with crude prices reflecting investor concerns about possible disruptions to supply. The attacks on Iran have increased uncertainty about regional stability, prompting traders to demand premium rates on petroleum contracts. Whilst current prices remain below the exceptional highs seen after Russia’s military incursion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts suggest that any additional escalation in hostilities could spark further price increases, especially if major shipping routes or manufacturing plants experience disruption.
Public finances and consumer impact
As petrol prices keep rising steadily, the government has been placed in an difficult situation. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has quietly benefited substantially from the surge in pump prices. Excise duty on fuel stays constant 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 inconsistency, suggesting that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own gains from elevated petrol costs.
The broader economic effects go further than personal family finances to encompass inflation pressures throughout the wider economy. Higher fuel costs pass through distribution networks, affecting transport expenses for commodities and services. Smaller enterprises relying on fuel-heavy processes face particular hardship, with haulage companies and courier services bearing substantial cost rises. Consumer purchasing capacity declines as households allocate funds into fuel purchases rather than other purchases, potentially dampening economic expansion. The RAC has counselled motorists to plan refuelling strategically and utilise fuel-price apps to identify the lowest-priced local fuel retailers, though these approaches offer only marginal relief against the broader price surge.
- Government collects set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise across all sectors and industries
- Consumer discretionary spending falls as family finances prioritise essential fuel purchases
What drivers should do at present
With petrol prices demonstrating no near-term likelihood of declining, motorists are being urged to implement a more planned strategy to refuelling. The RAC has highlighted the value of mapping out trips methodically and using price-comparison tools to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such measures offer only modest savings, they can build substantially over time. Drivers may also wish to evaluate whether non-essential journeys can be delayed or merged to minimise overall fuel expenditure. For those dealing with the Easter period, booking travel plans in advance and filling up at cheaper locations before undertaking longer drives could aid in lessening the burden of elevated pump prices on holiday budgets.
- Use fuel price comparison apps to locate the most affordable nearby petrol stations before refuelling
- Combine journeys where feasible and postpone non-essential trips to reduce consumption
- Fill up at cheaper locations before setting out on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and reduce total costs
