Petrol prices have breached the 150p-per-litre milestone for the first time in almost two years, fuelling the debate over whether fuel retailers are capitalising on surging oil costs for financial gain. The typical cost 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 pushed up by £10 to the cost of filling a standard family vehicle in only a month, follow geopolitical tensions in the Middle East that erupted a month ago when the US and Israel carried out operations on Iran. Asda’s chief executive Allan Leighton has firmly rejected accusations of excessive profit-taking, instead pointing to ministers for unfairly “pointing the finger” at petrol station owners struggling with limited supply chains.
The 150p level exceeded
The milestone marks a important juncture for British motorists, who have seen fuel costs rise consistently since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre tank, drivers are now dealing with expenses exceeding £82 for a full tank of unleaded petrol—nearly £10 more than just a month earlier. The RAC has described the breach of 150p as an unwelcome milestone that will impact families already grappling with the rising cost of living. The increases are remarkably poorly timed, arriving just as families begin planning their Easter trips and summer breaks, when demand for fuel typically reaches its highest levels.
Whilst the current prices stay below the peak levels witnessed following Russia’s invasion of 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 standing at over 177p. The RAC’s findings shows that petrol has risen 17p per litre in the identical timeframe. With supply chains already strained and some petrol stations reporting brief shutdowns caused by unusually high demand, the combination of higher prices and possible supply problems threatens to worsen challenges for motorists across the country.
- Unleaded petrol now 17p more expensive per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since tensions began
- Filling a family car costs approximately £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retailers challenge against government accusations
The escalating row over fuel pricing has exposed a deepening split between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances outside their remit. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers amid the pricing spike. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and major chains like Asda have insisted that margins have truly narrowed during the latest surge, leaving scant scope for profiteering even if operators were willing to do so. This mutual recrimination reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and public perception of government competence.
The CMA has announced it will strengthen oversight of the fuel sector, signalling that regulatory oversight will tighten. Yet retailers argue this increased scrutiny misses the core issue: they are responding to real supply limitations and wholesale price fluctuations, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and value-added tax, potentially earning more from the price surge than fuel retailers. This observation has introduced an uncomfortable dimension to the discussion, suggesting that government criticism may overlook the state’s own financial interests in elevated fuel costs.
Asda’s defence and procurement 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, emphasising instead that fuel volumes have surged significantly, with demand far exceeding available supply. He acknowledged 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 subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks highlight a critical separation between profiteering and inventory control. When demand increases sharply, as has occurred in the wake of the Middle East tensions, retailers may find it challenging to keep up inventory levels despite making every effort. The Petrol Retailers Association corroborated this narrative, recognising sporadic supply problems at “a handful of forecourts for one retailer” but maintaining that overall UK supply is flowing normally. The body counselled drivers that there is no reason to change their normal purchasing habits, implying that accounts of supply issues have been inflated or isolated.
Middle Eastern instability pushing bulk pricing
The sharp rise in petrol and diesel prices has been directly linked to mounting instability in the Middle East, following military strikes between the US, Israel and Iran roughly a month earlier. These political changes have produced substantial volatility in global oil markets, forcing wholesale costs up and compelling retailers to pass increases through to consumers on the forecourt. The RAC has noted that unleaded petrol has risen by 17p per litre since hostilities started, whilst diesel has increased even more dramatically by 35p per litre. Analysts caution that further regional instability could drive prices upward still, particularly if transport corridors through key passages become interrupted.
The timing of these cost rises has turned out to be especially difficult for British motorists heading into the Easter holidays. Families planning road trips face considerably elevated petrol costs, with the expense of filling a typical family car now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel cars are affected to an even greater extent, with a full tank now costing over £97, constituting a £19 increase. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the combined effect 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 |
Crude oil fluctuations plus political tensions
Global oil markets remain highly responsive to Middle Eastern events, with crude prices reflecting investor concerns about possible disruptions to supply. The attacks on Iran have increased uncertainty about stability in the region, leading traders to demand risk premiums on petroleum agreements. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s military incursion of Ukraine—when wholesale costs reached record highs—the trajectory is concerning. Energy analysts indicate that any further escalation in hostilities could spark further price increases, particularly if major transport corridors or manufacturing plants face disruption.
Public finances and consumer impact
As petrol prices keep rising steadily, the government has found itself in an difficult situation. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel stays constant regardless of the wholesale cost, 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, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own gains from elevated petrol costs.
The more extensive economic effects go further than personal family finances to include price increases across the entire economy. Elevated petrol prices flow through supply networks, impacting transport expenses for commodities and services. Small businesses relying on fuel-intensive operations experience significant difficulty, with transport firms and courier services absorbing significant cost increases. Household purchasing power diminishes as people channel spending into fuel purchases rather than alternative spending, potentially dampening GDP growth. The RAC has advised drivers to plan refuelling strategically and utilise fuel-price apps to identify the most affordable nearby petrol stations, though these steps deliver modest help 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 across all sectors and industries
- Consumer non-essential spending declines as family finances prioritise essential fuel purchases
What motorists should do now
With petrol prices displaying no immediate prospect of falling, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has emphasised the importance of planning journeys carefully and utilising price-comparison applications to locate the most affordable petrol stations in their local region. Whilst such steps deliver only limited savings, they can build substantially over time. Drivers may also wish to evaluate whether non-essential journeys can be postponed or combined to minimise overall fuel expenditure. For those preparing for the Easter break, arranging travel plans ahead of time and filling up at cheaper locations before setting out on extended journeys could assist in reducing the effect of higher petrol rates on vacation finances.
- Use petrol price finder tools to find the most affordable nearby petrol stations before filling up
- Merge trips where possible and postpone 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 reduce total costs
