Petrol prices have exceeded the 150p-per-litre milestone for the first occasion in almost two years, heightening the debate over whether petrol stations are taking advantage of rocketing oil costs for profit. The average price for unleaded petrol climbed above the important mark on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The notable jumps, which have added nearly £10 to the price of topping up a standard family vehicle in just a month, follow regional conflict 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 categorically refuted accusations of profiteering, instead blaming ministers for unjustly blaming at petrol station owners struggling with restricted supply networks.
The 150p barrier breached
The milestone represents a important juncture for British motorists, who have watched fuel costs increase progressively since the Middle East tensions began. For a typical family car requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a complete tank of unleaded petrol—nearly £10 more than just a month earlier. The RAC has termed the breach of 150p as an unwanted milestone that will sting households already dealing with the rising cost of living. The increases are especially badly timed, arriving just as families begin planning their Easter trips and summer breaks, when fuel demand traditionally peaks.
Whilst the present prices remain below the peak levels recorded following Russia’s attack on Ukraine in 2022, the swift increase has reignited worries regarding cost and availability. Diesel has performed considerably worse, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis shows that unleaded petrol has risen 17p per litre in the identical timeframe. With supply chains already strained and some forecourts reporting temporary pump closures caused by unusually high demand, the combination of elevated costs and possible supply problems risks compound difficulties for drivers across the country.
- Unleaded petrol now 17p costlier per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since the tensions started
- Filling up a family car costs approximately £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers challenge against government accusations
The growing row over fuel pricing has highlighted a widening divide between the government and forecourt operators, who argue they are being unjustly blamed for circumstances beyond their control. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers throughout the price surge. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and leading operators like Asda have insisted that margins have actually compressed during the current increase, leaving minimal space for profiteering even if operators were inclined to do so. This blame-shifting reflects the public concern surrounding fuel costs, which directly impact household budgets and public perception of government competence.
The CMA has stated it will strengthen oversight of the fuel sector, indicating that regulatory scrutiny will tighten. Yet retailers argue this increased scrutiny misses the core issue: they are responding to real supply limitations and wholesale price movements, 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, potentially earning more from the price surge than fuel retailers. This observation has added an uncomfortable dimension to the debate, implying that government criticism may overlook the government’s own economic stakes in higher fuel prices.
Asda’s defence and supply difficulties
As the UK’s second-biggest fuel retailer, Asda has found itself at the heart of the pricing row. 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 briefly stopped operating due to exceptional customer demand, but maintained that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks highlight a important distinction between profit-seeking and supply management. When demand spikes dramatically, as took place after the Middle East tensions, retailers can struggle to maintain standard inventory levels in spite of their efforts. The Petrol Retailers Association corroborated this narrative, recognising sporadic supply problems at “a handful of forecourts for one retailer” but insisting that supply across the UK is flowing normally. The association recommended drivers that there is no reason to change their normal purchasing habits, suggesting that reports of shortages have been exaggerated or localised.
Middle East conflicts driving bulk pricing
The sharp rise in petrol and diesel prices has been firmly tied to mounting instability in the Middle East, following armed operations between the US, Israel and Iran approximately a month ago. These regional shifts have produced substantial volatility in worldwide petroleum markets, driving wholesale prices higher and obliging retailers to pass increases through to consumers at fuel stations. The RAC has documented that unleaded petrol has increased 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 push prices higher still, especially should supply routes through essential bottlenecks become blocked.
The scheduling of these price increases has turned out to be especially difficult for British motorists approaching the Easter holidays. Families organising road trips face significantly higher fuel bills, with the cost of topping up a standard family vehicle now exceeding £82 for standard petrol—roughly £9.50 more than just a month earlier. Diesel-powered vehicles are impacted even more severely, with a full tank 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,” highlighting the combined effect on family finances during what should be a time 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 volatility and geopolitical factors
Global oil markets remain highly sensitive to Middle Eastern developments, with crude prices reflecting investor worries about potential supply disruptions. The attacks on Iran have heightened uncertainty about stability in the region, prompting traders to require premium rates on petroleum contracts. 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 indicate that any further escalation in hostilities could trigger further price increases, especially if major shipping routes or manufacturing plants face disruption.
Government revenue and consumer impact
As petrol prices maintain their upward climb, the government has been placed in an difficult situation. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has quietly benefited substantially from the surge in pump prices. 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 executive chairman Allan Leighton pointedly noted this contradiction, suggesting that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own gains from elevated petrol costs.
The wider economic effects go further than domestic spending limits to encompass inflation pressures throughout the wider economy. Elevated petrol prices flow through supply chains, impacting haulage expenses for goods and services. Small businesses reliant on fuel-heavy processes experience significant difficulty, with haulage companies and delivery services absorbing significant cost increases. Consumer spending power declines as families redirect money into fuel purchases rather than alternative spending, likely slowing economic growth. The RAC has counselled drivers to organise refuelling efficiently and utilise fuel-price apps to identify the lowest-priced local fuel retailers, though these approaches deliver modest help against the broader price surge.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures intensify as transport costs rise throughout various sectors and industries
- Consumer discretionary spending declines as family finances focus on essential fuel purchases
What motorists should do at present
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 emphasised the importance of mapping out trips methodically and leveraging price-comparison platforms to find the lowest-priced fuel retailers in their surrounding neighbourhood. 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 deferred or consolidated to lower total fuel usage. For those facing the Easter holidays, arranging travel plans ahead of time and filling up at cheaper locations before undertaking longer drives could help mitigate the impact of increased fuel costs on holiday spending.
- Use fuel price comparison apps to find the cheapest local forecourts before filling up
- Combine journeys where possible and postpone unnecessary journeys to lower fuel usage
- Fill up at more affordable stations before embarking on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and reduce total costs
