Petrol prices have surpassed the 150p-per-litre milestone for the first time in nearly two years, fuelling the debate over whether petrol stations are exploiting rocketing oil costs for financial gain. The typical cost for unleaded petrol exceeded the important mark on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The notable jumps, which have increased by around £10 to the price of topping up a typical family car in only a month, follow military tensions 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 profiteering, instead blaming ministers for wrongly accusing at petrol station owners struggling with restricted supply networks.
The 150p level exceeded
The milestone marks a important juncture for British motorists, who have watched fuel costs rise consistently since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now encountering costs exceeding £82 for a complete tank of unleaded petrol—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwelcome milestone that will sting households already struggling with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families start 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 recorded after Russia’s invasion of Ukraine in 2022, the swift increase has revived concerns about cost and availability. Diesel has fared even worse, climbing 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s analysis reveals that unleaded petrol has risen 17p per litre in the identical timeframe. With distribution networks already stretched and some forecourts experiencing temporary pump closures due to exceptional demand, the combination of elevated costs and potential availability issues risks compound difficulties for drivers throughout the nation.
- Unleaded petrol now 17p more expensive per litre than pre-conflict levels
- Diesel prices have increased by 35p per litre since the tensions started
- Filling up a family car costs approximately £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back against government accusations
The escalating row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers during the price surge. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and large retailers like Asda have insisted that margins have actually compressed during the recent spike, leaving scant scope for profiteering even if operators were disposed to act. This finger-pointing reflects the political importance surrounding fuel costs, which materially influence household budgets and popular understanding of government competence.
The CMA has stated it will strengthen monitoring of the petrol market, signalling that regulatory oversight will tighten. Yet fuel retailers argue this heightened oversight overlooks the fundamental point: they are reacting to genuine supply constraints and wholesale price fluctuations, not creating false shortages for profit. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and value-added tax, potentially earning more from the price spike than fuel retailers. This observation has introduced an awkward element to the discussion, suggesting that government criticism may disregard the government’s own financial interests in higher fuel prices.
Asda’s defence and procurement challenges
As the UK’s second-biggest fuel supplier, Asda has positioned itself at the centre of the profiteering controversy. 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 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 resume service following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements underscore a critical distinction between profiteering and supply management. When demand increases sharply, as took place in the wake of the Middle East tensions, retailers may find it challenging to maintain normal stock levels in spite of their efforts. The Association of Petrol Retailers corroborated this account, recognising isolated availability issues at “a handful of forecourts for one retailer” but insisting that supply across the UK is flowing normally. The association counselled drivers that there is no need to change their normal buying patterns, suggesting that reports of shortages have been exaggerated or isolated.
Middle Eastern conflicts pushing bulk pricing
The marked increase in petrol and diesel prices has been closely connected to rising conflict in the Middle East, in the wake of armed operations between the US, Israel and Iran about a month prior. These political changes have created significant uncertainty in international energy markets, pushing wholesale costs upwards and compelling retailers to pass increases through 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 increased even more dramatically by 35p per litre. Analysts warn that additional geopolitical disruption could force prices up still, particularly if transport corridors through key passages become disrupted.
The timing of these price increases has proven particularly painful for British motorists approaching the Easter holidays. Families organising road trips encounter considerably elevated petrol costs, with the cost of filling a typical family car now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month earlier. Diesel cars are affected even more severely, with a complete fill-up now costing over £97, representing a £19 rise. 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 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 fluctuations plus geopolitical factors
Global oil sectors stay highly sensitive to Middle Eastern developments, with crude prices mirroring investor concerns about potential supply disruptions. The attacks on Iran have heightened doubt about regional stability, prompting traders to demand premium rates on petroleum contracts. Whilst current prices stay below the exceptional highs seen after Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is concerning. Energy analysts suggest that any further escalation in conflict could trigger additional price spikes, especially if major shipping routes or production facilities face disruption.
Public finances and consumer impact
As petrol prices keep rising steadily, the government has been placed in an awkward position. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the spike in fuel costs. Excise duty on fuel stays constant regardless of the wholesale cost, meaning the government receives identical duty per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own windfall from higher fuel prices.
The more extensive financial consequences transcend personal family finances to encompass price increases across all economic sectors. Increased fuel expenses flow through supply chains, impacting haulage expenses for goods and services. SMEs reliant on high-fuel activities encounter considerable challenges, with transport firms and courier services bearing substantial cost rises. Household purchasing power declines as families redirect money to fuel stations rather than alternative spending, potentially dampening GDP growth. The RAC has recommended motorists to plan refuelling strategically and utilise fuel-price apps to find the lowest-priced local fuel retailers, 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 falls as family finances prioritise necessary fuel spending
What drivers ought to do now
With petrol prices displaying no immediate prospect of falling, motorists are being advised to implement a more planned strategy to refuelling. The RAC has stressed the significance of planning journeys carefully and using price-comparison tools to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such approaches provide only marginal gains, they can build substantially over time. Drivers may also wish to evaluate whether discretionary journeys can be postponed or combined to minimise overall fuel expenditure. For those dealing with the Easter period, booking travel plans in advance and topping up at budget-friendly forecourts before undertaking longer drives could assist in reducing the effect of elevated pump prices on holiday spending.
- Use petrol price finder tools to find the cheapest local forecourts before filling up
- Combine journeys where possible and defer unnecessary journeys to reduce consumption
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Plan routes carefully to improve fuel economy and reduce total costs
