Petrol prices have breached the 150p-per-litre mark for the first time in almost two years, intensifying the debate over whether petrol stations are capitalising on surging oil costs for profit. The average price for unleaded petrol climbed above the symbolic threshold on Friday, whilst diesel surged past 177p, according to figures from the RAC. The notable jumps, which have pushed up by £10 to the price of topping up a typical family car in only a month, follow geopolitical tensions in the region that erupted a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has firmly rejected accusations of profiteering, instead pointing to ministers for unfairly “pointing the finger” at forecourt operators battling limited supply chains.
The 150p barrier breached
The milestone constitutes a important juncture for British motorists, who have seen fuel costs climb steadily since the Middle East tensions began. For a standard family vehicle requiring a 55-litre 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 characterised the breach of 150p as an unwanted milestone that will impact families already grappling with the rising cost of living. The increases are particularly poorly timed, arriving just as families commence planning their Easter getaways and summer breaks, when demand for fuel conventionally surges.
Whilst the current prices stay below the record highs witnessed following Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived worries regarding cost and availability. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s analysis reveals that petrol has increased 17p per litre in the identical timeframe. With distribution networks already strained and some petrol stations reporting brief shutdowns caused by exceptional demand, the combination of elevated costs and possible supply problems risks compound difficulties for drivers throughout the nation.
- Unleaded fuel now 17p costlier per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since tensions began
- Filling a family car costs roughly £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers push back on official allegations
The escalating row over fuel pricing has exposed a growing rift between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances they cannot influence. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers during the cost escalation. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and large retailers 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 finger-pointing reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The Competition and Markets Authority has announced it will strengthen monitoring of the fuel sector, indicating that regulatory scrutiny will tighten. Yet retailers argue this increased scrutiny misses the core issue: they are reacting to genuine supply constraints and wholesale price movements, not engineering artificial scarcity for profit. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and VAT, potentially earning more from the price spike than fuel retailers. This remark has introduced an awkward element to the debate, implying that government criticism may overlook the government’s own financial interests in higher fuel prices.
Asda’s defence and supply difficulties
As the UK’s second largest 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 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 insisted 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 statements highlight a critical separation between profiteering and supply management. When demand increases sharply, as has occurred following the Middle East tensions, retailers may find it challenging to maintain standard inventory levels in spite of their efforts. The Petrol Retailers Association corroborated this claim, recognising isolated availability issues at “a small number of forecourts for one retailer” but insisting that the UK’s overall supply is flowing normally. The body counselled drivers that there is no reason to modify their regular purchasing habits, suggesting that accounts of supply issues are overstated or isolated.
Middle Eastern tensions pushing bulk pricing
The notable surge in petrol and diesel prices has been firmly tied to mounting instability in the Middle East, in the wake of armed operations between the US, Israel and Iran approximately a month ago. These geopolitical developments have created significant uncertainty in international energy markets, driving wholesale prices higher and forcing retailers to hand on rises to consumers at fuel stations. The RAC has recorded that regular fuel has risen by 17p per litre since the conflict began, whilst diesel has risen even more sharply by 35p per litre. Analysts caution that further regional instability could push prices higher still, particularly if supply routes through critical chokepoints become disrupted.
The timing of these price increases has turned out to be especially difficult for British drivers heading into the Easter holidays. Families planning road trips face significantly higher fuel bills, with the cost of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 more 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 crossing of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the cumulative impact on family finances 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 sectors stay highly responsive to Middle Eastern events, with crude prices mirroring investor worries about potential supply disruptions. The attacks on Iran have increased doubt about stability in the region, leading traders to demand risk premiums on petroleum agreements. Whilst current prices remain below the extraordinary peaks seen after Russia’s invasion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts suggest that any additional escalation in hostilities could spark additional price spikes, especially if major transport corridors or production facilities experience disruption.
Government revenue and impact on consumers
As petrol prices continue their upward trajectory, the government has found itself in an awkward position. Whilst government officials have openly condemned 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 market price, meaning the government receives identical duty per litre no matter if 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 should acknowledge its own gains from elevated petrol costs.
The wider economic implications go further than personal family finances to include inflationary forces across all economic sectors. Elevated petrol prices feed through supply chains, impacting haulage expenses for goods and services. Small businesses reliant on high-fuel activities encounter considerable challenges, with haulage companies and delivery services bearing substantial cost rises. Consumer purchasing capacity declines as households allocate funds to fuel stations rather than different expenditures, possibly reducing GDP growth. The RAC has counselled drivers to schedule fuel purchases carefully and utilise fuel-price apps to identify the cheapest local forecourts, though these approaches deliver modest help against the broader price surge.
- Government receives fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as transport costs rise throughout various sectors and industries
- Consumer non-essential spending falls as family finances prioritise essential fuel purchases
What drivers should do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to adopt a more strategic approach to refuelling. The RAC has stressed the significance of mapping out trips methodically and using price-comparison tools to identify the cheapest forecourts in their local region. Whilst such approaches provide only marginal gains, they can accumulate meaningfully over time. Drivers should also consider whether discretionary journeys can be delayed or merged to lower total fuel usage. For those dealing with the Easter period, reserving travel arrangements early and topping up at budget-friendly forecourts before setting out on extended journeys could help mitigate the impact 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 defer non-essential trips to lower fuel usage
- Fill up at cheaper locations before setting out on extended Easter break trips
- Plan routes carefully to improve fuel economy and minimise overall expenditure
