Petrol prices have breached the 150p-per-litre threshold for the first time in almost two years, intensifying the argument over whether fuel retailers are capitalising on surging oil costs for financial gain. The average price for unleaded petrol rose past the symbolic threshold on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The steep rises, which have pushed up by £10 to the price of topping up a typical family car in just 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 strongly denied accusations of excessive profit-taking, instead blaming ministers for unfairly “pointing the finger” at petrol station owners struggling with limited supply chains.
The 150p threshold broken
The milestone marks a significant moment for British motorists, who have seen fuel costs increase progressively since the Middle East tensions began. For a typical family car requiring a 55-litre tank, drivers are now encountering costs exceeding £82 for a full tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has described the breach of 150p as an unwanted milestone that will impact families already dealing with the rising cost of living. The increases are especially badly timed, arriving just as families commence planning their Easter getaways and summer breaks, when fuel demand typically reaches its highest levels.
Whilst the present prices stay below the peak levels recorded following Russia’s attack on Ukraine in 2022, the swift increase has revived worries regarding affordability and accessibility. Diesel has struggled even more, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis shows that unleaded petrol has increased 17p per litre in the same period. With supply chains already strained and some forecourts experiencing brief shutdowns caused by exceptional demand, the combination of elevated costs and possible supply problems risks compound difficulties for drivers across the country.
- Unleaded fuel 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 approximately £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers push back on government accusations
The growing row over fuel pricing has exposed a growing rift between the government and forecourt operators, who argue they are being unjustly blamed for circumstances beyond their control. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers throughout the price surge. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and major chains like Asda have insisted that margins have genuinely tightened during the latest surge, leaving little room for profiteering even if operators were disposed to act. This finger-pointing reflects the political importance surrounding fuel costs, which significantly affect household budgets and popular understanding of government competence.
The CMA has announced it will intensify oversight of the petrol market, indicating that regulatory oversight will increase. Yet retailers contend this heightened oversight misses the core issue: they are responding to real supply limitations and wholesale price fluctuations, not creating artificial scarcity for financial gain. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and VAT, potentially earning more from the price spike than retailers do. This observation has introduced 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 defence and supply difficulties
As the UK’s second largest fuel supplier, Asda has positioned itself at the heart of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, stressing instead that fuel volumes have increased substantially, with demand far exceeding available supply. He acknowledged that a small number of pumps have briefly stopped operating 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 short-term rather than long-term.
Leighton’s statements underscore a key difference between profit-seeking and inventory control. When demand surges unexpectedly, as has occurred following the Middle East tensions, retailers can struggle to keep up stock levels despite their best efforts. The Petrol Retailers Association backed up this account, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but asserting that the UK’s overall supply is operating as usual. The body advised drivers that there is no reason to modify their regular shopping behaviour, implying that accounts of supply issues have been exaggerated or isolated.
Middle Eastern instability increasing bulk pricing
The sharp rise in petrol and diesel prices has been directly linked to escalating tensions in the Middle East, following military strikes between the US, Israel and Iran roughly a month earlier. These geopolitical developments have created significant uncertainty in global oil markets, forcing wholesale costs up and forcing retailers to hand on rises to consumers at the pump. The RAC has noted that standard petrol has risen by 17p per litre since the fighting commenced, whilst diesel has risen even more sharply by 35p per litre. Analysts alert that additional geopolitical disruption could push prices higher still, particularly if distribution channels through critical chokepoints become interrupted.
The scheduling of these cost rises has proven particularly painful for British motorists heading into the Easter break. Families organising driving holidays encounter considerably elevated 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-powered vehicles are impacted to an even greater extent, 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,” highlighting the cumulative impact on household budgets 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 fluctuations plus geopolitical factors
Global oil sectors remain highly sensitive to Middle Eastern events, with crude prices reflecting investor concerns about potential disruptions to supply. The attacks on Iran have heightened doubt about stability in the region, prompting traders to require risk premiums on petroleum contracts. Whilst current prices remain below the exceptional highs seen after Russia’s invasion of Ukraine—when wholesale costs reached unprecedented levels—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 face disruption.
Public finances and consumer impact
As petrol prices continue their upward trajectory, the government has been placed 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 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 inconsistency, proposing that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own windfall from higher fuel prices.
The wider economic effects extend beyond personal family finances to cover inflationary forces across all economic sectors. Higher fuel costs flow through distribution networks, influencing delivery costs for commodities and services. SMEs dependent on high-fuel activities encounter considerable challenges, with freight operators and logistics providers absorbing significant cost increases. Consumer purchasing capacity declines as households allocate funds into fuel purchases rather than alternative spending, likely slowing GDP growth. The RAC has advised vehicle owners to schedule fuel purchases carefully and employ price-checking tools to find the lowest-priced local fuel retailers, though such measures provide limited assistance against the overall cost escalation.
- Government collects set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as shipping expenses rise throughout various sectors and industries
- Consumer non-essential spending declines as family finances prioritise essential fuel purchases
What motorists ought to do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to take a more calculated approach to refuelling. The RAC has highlighted the value of carefully planning journeys and leveraging price-comparison platforms to locate the most affordable petrol stations in their local area. Whilst such steps deliver only limited savings, they can build substantially over time. Drivers ought to also think about whether discretionary journeys can be deferred or consolidated to lower total fuel usage. For those facing the Easter holidays, arranging travel plans ahead of time and topping up at budget-friendly forecourts before undertaking longer drives could assist in reducing the effect of higher petrol rates on vacation finances.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before filling up
- Merge trips where feasible and postpone non-essential trips to reduce consumption
- Fill up at more affordable stations before embarking on extended Easter break trips
- Plan routes carefully to improve fuel economy and reduce total costs
