Petrol prices have surpassed the 150p-per-litre threshold for the first time in nearly two years, heightening the discussion over whether petrol stations are capitalising on soaring oil costs for financial gain. The average price for standard petrol climbed above the symbolic threshold on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The steep rises, which have added nearly £10 to the cost of filling a typical family car in only a month, follow military tensions in the region that broke out a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of profiteering, instead pointing to ministers for unjustly blaming at forecourt operators struggling with constrained supply chains.
The 150p threshold broken
The milestone constitutes a significant moment for British motorists, who have watched fuel costs increase progressively 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 full tank of unleaded petrol—nearly £10 more than just a month earlier. The RAC has described the breach of 150p as an unwanted milestone that will affect households already struggling 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 conventionally surges.
Whilst the present prices stay below the peak levels witnessed after Russia’s attack on Ukraine in 2022, the rapid acceleration has reignited worries regarding affordability and accessibility. Diesel has performed considerably worse, climbing 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis shows that petrol has risen 17p per litre in the identical timeframe. With distribution networks already strained and some forecourts reporting temporary pump closures due to unusually high demand, the combination of elevated costs and possible supply problems threatens to compound difficulties for drivers throughout the nation.
- Unleaded fuel now 17p more expensive per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since tensions began
- Filling a family car costs roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back on government accusations
The intensifying row over fuel pricing has highlighted a widening divide between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers during the price surge. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and large retailers like Asda have insisted that margins have actually compressed during the latest surge, leaving minimal space for profiteering even if operators were willing to do so. This blame-shifting reflects the public concern surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The Competition and Markets Authority has stated it will intensify monitoring of the petrol market, indicating that regulatory oversight will tighten. Yet fuel retailers contend 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 highlighted that the state profits significantly from fuel duty and value-added tax, possibly gaining more from the price spike than retailers do. This observation has added an uncomfortable dimension to the discussion, suggesting that criticism from Westminster may overlook the government’s own economic stakes in elevated fuel costs.
Asda’s defence and procurement challenges
As the UK’s second largest fuel retailer, Asda has positioned itself at the heart of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, stressing instead that fuel volumes have surged significantly, with demand far exceeding available supply. He conceded that a small number of pumps have temporarily gone out of service due to unusually high customer demand, but maintained that Asda has not closed any forecourts entirely. The company expects affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations highlight a important separation between profiteering and inventory control. When demand spikes dramatically, as has occurred in the wake of the regional tensions in the Middle East, retailers can find it difficult to maintain standard inventory levels despite their best efforts. The Association of Petrol Retailers corroborated this narrative, acknowledging isolated availability issues at “a handful of forecourts for one retailer” but asserting that supply across the UK is operating as usual. The body counselled drivers that there is no requirement to alter their usual shopping behaviour, suggesting that accounts of supply issues are overstated or localised.
Middle East conflicts increasing bulk pricing
The marked increase in petrol and diesel prices has been closely connected to rising conflict in the Middle East, following armed operations between the US, Israel and Iran about a month prior. These political changes have produced substantial volatility in international energy markets, driving wholesale prices higher and compelling retailers to transfer costs to consumers at the pump. The RAC has documented that standard petrol has increased by 17p per litre since the fighting commenced, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that ongoing tensions could drive prices upward still, particularly if distribution channels through critical chokepoints become interrupted.
The timing of these price increases has turned out to be especially difficult for British drivers heading into the Easter holidays. Families organising driving holidays face significantly higher fuel bills, with the cost of topping up a standard family vehicle now surpassing £82 for unleaded petrol—roughly £9.50 more than just a month before. Diesel cars are affected to an even greater extent, with a complete fill-up now costing over £97, representing a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre mark as an “unwelcome milestone,” underlining the cumulative impact 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 geopolitical factors
Global oil sectors remain highly responsive to Middle Eastern events, with crude prices mirroring investor concerns about potential supply disruptions. The attacks on Iran have heightened doubt about regional stability, leading traders to require risk premiums on petroleum contracts. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is worrying. Energy analysts indicate that any additional escalation in conflict could spark additional price spikes, particularly if major transport corridors or production facilities face disruption.
Public finances and consumer impact
As petrol prices maintain their upward climb, 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 spike in fuel costs. Excise duty on fuel remains fixed 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 pointedly noted this inconsistency, suggesting 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 financial consequences extend beyond domestic spending limits to encompass inflation pressures across all economic sectors. Increased fuel expenses pass through distribution networks, affecting haulage expenses for commodities and services. Smaller enterprises dependent on fuel-intensive operations experience significant difficulty, with freight operators and delivery services absorbing significant cost increases. Household purchasing power falls as households allocate funds to fuel stations rather than other purchases, possibly reducing economic growth. The RAC has recommended drivers to organise refuelling efficiently and employ price-checking tools to identify the cheapest local forecourts, though these approaches offer only marginal relief against the wider price increase.
- Government receives set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as shipping expenses rise throughout various sectors and industries
- Consumer non-essential spending declines as family finances prioritise essential fuel purchases
What drivers ought to do at present
With petrol prices demonstrating no near-term likelihood of declining, motorists are being urged to take a more calculated approach to refuelling. The RAC has emphasised the importance of carefully planning journeys and using price-comparison tools to locate the most affordable petrol stations 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 minimise overall fuel expenditure. For those preparing for the Easter break, booking travel plans in advance and topping up at budget-friendly forecourts before setting out on extended journeys could assist in reducing the effect of higher petrol rates on holiday budgets.
- Use petrol price finder tools to find the most affordable nearby petrol stations before filling up
- Combine journeys where possible and defer unnecessary journeys to lower fuel usage
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and minimise overall expenditure