Petrol prices have breached the 150p-per-litre threshold for the first occasion in nearly two years, fuelling the discussion over whether petrol stations are exploiting rocketing oil costs for financial gain. The typical cost for standard petrol climbed above the important mark on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The notable jumps, which have increased by around £10 to the cost of filling a typical family car in only a month, follow regional conflict in the Middle East that erupted a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has firmly rejected accusations of excessive profit-taking, instead blaming ministers for unfairly “pointing the finger” at petrol station owners battling 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 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 complete tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwanted milestone that will sting households already grappling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families commence planning their Easter trips and summer breaks, when fuel demand typically reaches its highest levels.
Whilst the current prices remain below the record highs witnessed following Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited concerns about affordability and accessibility. Diesel has fared even worse, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s findings shows that unleaded petrol has increased 17p per litre in the same period. With distribution networks already strained and some forecourts reporting temporary pump closures caused by exceptional demand, the mix of higher prices and potential availability issues threatens to worsen challenges for motorists across the country.
- Unleaded fuel now 17p costlier per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since tensions began
- Filling a family car costs approximately £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retailers challenge on government accusations
The intensifying row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances outside their remit. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers during the pricing spike. However, fuel retailers have hit back, 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 current increase, leaving little room for profiteering even if operators were willing to do so. This finger-pointing reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and consumer views of government competence.
The CMA has stated it will strengthen monitoring of the fuel sector, indicating that regulatory scrutiny will increase. Yet retailers argue this increased scrutiny misses the core issue: they are reacting to real supply limitations and wholesale price fluctuations, not creating artificial scarcity for financial gain. Asda’s Allan Leighton highlighted that the government itself benefits substantially from fuel duty and value-added tax, possibly gaining more from the price surge than retailers do. This remark has added an awkward element to the discussion, implying that criticism from Westminster may overlook the state’s own financial interests in higher fuel prices.
Asda’s defense and logistics challenges
As the UK’s second largest fuel retailer, Asda has found itself at the centre of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, stressing instead that fuel volumes have increased substantially, with demand substantially outstripping available supply. He acknowledged that a small number of pumps have temporarily gone out of service due to unusually high customer demand, but maintained that Asda has not shut down any petrol stations completely. The company anticipates the affected pumps to resume service following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements underscore a important distinction between profiteering and inventory control. When demand spikes dramatically, as took place following the regional tensions in the Middle East, retailers can find it difficult to keep up inventory levels despite their best efforts. The Petrol Retailers Association supported this claim, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but asserting that supply across the UK is functioning smoothly. The body recommended drivers that there is no need to modify their regular purchasing habits, implying that accounts of supply issues have been exaggerated or isolated.
Middle East instability increasing wholesale costs
The marked increase in petrol and diesel prices has been directly linked to rising conflict in the Middle East, in the wake of military strikes between the US, Israel and Iran about a month prior. These political changes have created significant uncertainty in international energy markets, driving wholesale prices higher and forcing retailers to transfer costs to consumers at fuel stations. The RAC has documented that regular fuel has risen by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts warn that ongoing tensions could force prices up still, particularly if distribution channels through critical chokepoints become disrupted.
The scheduling of these cost rises has proven particularly painful for British drivers approaching the Easter break. Families planning driving holidays 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 cars are affected even more severely, with a full tank now costing over £97, constituting a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the combined effect on household budgets during what ought to 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 mirroring investor worries about potential supply disruptions. The attacks on Iran have heightened doubt about stability in the region, leading traders to demand premium rates on petroleum agreements. Whilst current prices remain below the extraordinary peaks seen after Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts suggest that any additional escalation in conflict could trigger further price increases, particularly if major transport corridors or production facilities face disruption.
Public finances and impact on consumers
As petrol prices maintain their upward climb, the government has found itself in an awkward position. Whilst government officials have openly condemned fuel retailers for potential profiteering, the Treasury has quietly benefited substantially 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 regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this inconsistency, suggesting that before accusing retailers of exploiting the crisis, the government ought to recognise its own windfall from higher fuel prices.
The broader economic effects extend beyond individual household budgets to encompass inflation pressures across all economic sectors. Higher fuel costs pass through supply chains, affecting haulage expenses for goods and services. Small businesses reliant on high-fuel activities face particular hardship, with transport firms and delivery services bearing substantial cost rises. Consumer spending power declines as families redirect money to fuel stations rather than other purchases, possibly reducing GDP growth. The RAC has counselled vehicle owners to organise refuelling efficiently and use price-comparison applications to identify the most affordable nearby petrol stations, though these approaches offer only marginal relief against the wider price increase.
- Government collects fixed excise duty 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 necessary fuel spending
What drivers ought to do now
With petrol prices showing no immediate signs of retreating, motorists are being advised to implement a more planned strategy to refuelling. The RAC has highlighted the value of planning journeys carefully and utilising price-comparison applications to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such steps deliver only limited savings, they can add up considerably over time. Drivers may also wish to evaluate whether discretionary journeys can be delayed or merged to reduce overall fuel consumption. For those dealing with the Easter period, reserving travel arrangements early and topping up at budget-friendly forecourts before embarking on longer trips could assist in reducing the effect of elevated pump prices on holiday spending.
- Use petrol price finder tools to find the most affordable nearby petrol stations before refuelling
- Combine journeys where feasible and postpone unnecessary journeys to lower fuel usage
- 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
