Petrol prices have surpassed the 150p-per-litre threshold for the first time in almost two years, heightening the discussion over whether fuel retailers are exploiting rocketing oil costs for financial gain. The average price for unleaded petrol climbed above the important mark on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The sharp increases, which have added nearly £10 to the price of topping up a typical family car in only a month, follow geopolitical tensions in the Middle East 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 excessive profit-taking, instead pointing to ministers for wrongly accusing at petrol station owners struggling with constrained supply chains.
The 150p threshold broken
The milestone marks a significant moment for British motorists, who have seen fuel costs rise consistently 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 full tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has characterised the breach of 150p as an unwanted milestone that will sting households already struggling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families begin planning their Easter trips and summer holidays, when demand for fuel typically reaches its highest levels.
Whilst the present prices remain below the peak levels recorded following Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived 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 increased 17p per litre in the same period. With distribution networks already strained and some forecourts experiencing brief shutdowns due to unusually high demand, the mix of elevated costs and potential availability issues threatens to worsen challenges for motorists across the country.
- Unleaded petrol 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 approximately £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back against government accusations
The intensifying row over fuel pricing has exposed a deepening split between the government and forecourt operators, who argue they are being wrongly targeted for circumstances beyond their control. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers during the cost escalation. However, fuel retailers have hit back, 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 little room for profiteering even if operators were willing to do so. This mutual recrimination reflects the public concern surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The Competition and Markets Authority has announced it will intensify oversight of the petrol market, indicating that regulatory oversight will increase. Yet fuel retailers argue this heightened oversight overlooks the core issue: they are reacting to genuine supply constraints and wholesale price movements, not engineering false shortages for financial gain. Asda’s Allan Leighton highlighted that the state benefits substantially from fuel duty and VAT, potentially earning more from the price spike than retailers do. This remark has introduced an uncomfortable dimension to the discussion, suggesting that government criticism may disregard the government’s own economic stakes in higher fuel prices.
Asda’s defense and logistics difficulties
As the UK’s second largest fuel retailer, Asda has positioned itself at the centre of the pricing row. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, emphasising instead that fuel volumes have surged significantly, with demand substantially outstripping available supply. He acknowledged that a small number of pumps have temporarily gone out of service due to exceptional customer demand, but maintained that Asda has not shut down any petrol stations completely. The company anticipates the affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements underscore a key distinction between profiteering and inventory control. When demand surges unexpectedly, as has happened in the wake of the Middle East tensions, retailers can struggle to keep up stock levels despite making every effort. The Petrol Retailers Association backed up this claim, admitting sporadic supply problems at “a small number of forecourts for one retailer” but maintaining that overall UK supply is functioning smoothly. The body counselled drivers that there is no requirement to change their normal shopping behaviour, suggesting that accounts of supply issues have been inflated or isolated.
Middle Eastern conflicts pushing bulk pricing
The notable surge in petrol and diesel prices has been closely connected to escalating tensions in the Middle East, subsequent to military strikes between the US, Israel and Iran approximately a month ago. These geopolitical developments have produced substantial volatility in international energy markets, driving wholesale prices higher and compelling retailers to pass increases through to consumers on the forecourt. The RAC has documented that unleaded petrol has climbed by 17p per litre since the fighting commenced, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that additional geopolitical disruption could force prices up still, especially should distribution channels through essential bottlenecks become blocked.
The timing of these cost rises has proven especially difficult for British drivers approaching the Easter break. Families planning road trips encounter considerably elevated petrol costs, with the expense of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month earlier. Diesel cars are impacted even more severely, with a full tank now costing over £97, constituting a £19 increase. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre threshold 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 political tensions
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 uncertainty about stability in the region, leading traders to require risk premiums on petroleum contracts. Whilst current prices stay below the exceptional highs seen after Russia’s military incursion of Ukraine—when wholesale costs reached record highs—the trajectory is concerning. Energy analysts indicate that any additional escalation in conflict could trigger additional price spikes, especially if major shipping routes or production facilities face disruption.
Government revenue and consumer impact
As petrol prices maintain their upward climb, the government has found itself in an awkward position. 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 stays constant regardless of the wholesale cost, meaning the government collects the same tax per litre no matter if petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted 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 more extensive economic implications go further than individual household budgets to cover price increases across all economic sectors. Elevated petrol prices feed through supply chains, impacting delivery costs for products and services. Smaller enterprises relying on fuel-intensive operations encounter considerable challenges, with transport firms and logistics providers bearing substantial cost rises. Household purchasing power diminishes as families redirect money to fuel stations rather than other purchases, likely slowing GDP growth. The RAC has recommended vehicle owners to schedule fuel purchases carefully and employ price-checking tools to find the cheapest local forecourts, though such measures provide limited assistance against the wider price increase.
- Government collects fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as transport costs rise throughout various sectors and industries
- Consumer discretionary spending falls as household budgets prioritise essential fuel purchases
What drivers ought to do at present
With petrol prices showing no immediate signs of retreating, motorists are being advised to take a more calculated approach to refuelling. The RAC has highlighted the value of carefully planning journeys and leveraging price-comparison platforms to find the lowest-priced fuel retailers in their local region. Whilst such steps deliver only limited savings, they can build substantially over time. Drivers may also wish to evaluate whether discretionary journeys can be deferred or consolidated to lower total fuel usage. For those facing the Easter holidays, booking travel plans in advance and filling up at cheaper locations before embarking on longer trips could aid in lessening the burden of increased fuel costs on holiday spending.
- Use petrol price finder tools to find the most affordable nearby petrol stations before refuelling
- Merge trips where feasible and defer unnecessary journeys to reduce consumption
- Fill up at more affordable stations before embarking on longer Easter holiday journeys
- Plan routes carefully to maximise fuel efficiency and reduce total costs
