Petrol prices have breached the 150p-per-litre threshold for the first time in nearly two years, heightening the discussion over whether petrol stations are capitalising on rocketing oil costs for profit. The typical cost for unleaded petrol exceeded the symbolic threshold on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The steep rises, which have increased by around £10 to the price of topping up a typical family car in only a month, follow geopolitical 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 pointing to ministers for wrongly accusing at forecourt operators struggling with constrained supply chains.
The 150p threshold broken
The milestone marks a significant moment for British motorists, who have watched fuel costs climb steadily 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 complete tank of unleaded petrol—nearly £10 more than just four weeks earlier. The RAC has characterised the breach of 150p as an unwelcome milestone that will impact families already struggling with the rising cost of living. The increases are especially badly timed, arriving just as families begin planning their Easter trips and summer holidays, when fuel demand traditionally peaks.
Whilst the present prices remain below the record highs recorded following Russia’s attack on Ukraine in 2022, the rapid acceleration has reignited worries regarding affordability and accessibility. Diesel has fared even worse, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis reveals that petrol has risen 17p per litre in the same period. With distribution networks already strained and some petrol stations experiencing temporary pump closures caused by exceptional demand, the mix of higher prices and potential availability issues threatens to worsen challenges for motorists throughout the nation.
- Unleaded fuel 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 roughly £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back on 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 outside their remit. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers during the cost escalation. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the latest surge, leaving scant scope for profiteering even if operators were disposed to act. This mutual recrimination reflects the public concern surrounding fuel costs, which directly impact household budgets and public perception of government competence.
The CMA has announced it will strengthen oversight of the petrol market, signalling that regulatory scrutiny will increase. Yet retailers contend this heightened oversight misses the fundamental point: 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 government itself benefits substantially from fuel duty and value-added tax, possibly gaining more from the price spike than fuel retailers. This observation has introduced an uncomfortable dimension to the debate, implying that government criticism may disregard the government’s own economic stakes in higher fuel prices.
Asda’s defence and supply difficulties
As the UK’s second-biggest fuel supplier, Asda has positioned itself at the heart of the pricing row. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have surged significantly, with demand far exceeding available supply. He conceded that a small number of pumps have briefly stopped operating 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 subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations underscore a key distinction between profit-seeking and inventory control. When demand increases sharply, as has occurred following the regional tensions in the Middle East, retailers can find it difficult to keep up inventory levels despite their best efforts. The Petrol Retailers Association supported this claim, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but asserting that supply across the UK is operating as usual. The association recommended drivers that there is no reason to modify their regular purchasing habits, implying that claims of stock problems are overstated or isolated.
Middle East instability increasing wholesale costs
The sharp rise in petrol and diesel prices has been directly linked to mounting instability in the Middle East, subsequent to military strikes between the US, Israel and Iran about a month prior. These regional shifts have created significant uncertainty in global oil markets, driving wholesale prices higher and forcing retailers to hand on rises to consumers on the forecourt. The RAC has recorded that unleaded petrol has climbed by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that further regional instability could drive prices upward still, particularly if transport corridors through critical chokepoints become interrupted.
The scheduling of these cost rises has proven especially difficult for British drivers heading into the Easter holidays. Families organising driving holidays encounter significantly higher petrol costs, with the cost of filling a typical family car now surpassing £82 for standard petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles are affected to an even greater extent, with a complete fill-up now costing over £97, constituting a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the cumulative impact on household budgets during what ought to be a time 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 |
Crude oil volatility and political tensions
Global oil markets remain highly responsive to Middle Eastern developments, with crude prices reflecting investor concerns about possible supply disruptions. The attacks on Iran have heightened doubt about regional stability, leading traders to require premium rates on petroleum agreements. Whilst current prices stay below the exceptional highs seen after Russia’s military incursion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is concerning. Energy analysts indicate that any additional escalation in hostilities could trigger further price increases, especially if major shipping routes or manufacturing plants face disruption.
Government revenue and impact on consumers
As petrol prices continue their upward trajectory, the government has been placed in an awkward position. Whilst ministers have publicly criticised fuel retailers for potential profiteering, 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 executive chairman 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 broader financial consequences transcend domestic spending limits to encompass price increases across the entire economy. Increased fuel expenses feed through supply networks, influencing haulage expenses for products and services. Small businesses reliant on fuel-intensive operations encounter considerable challenges, with freight operators and logistics providers absorbing significant cost increases. Household purchasing power diminishes as people channel spending toward petrol pumps rather than other purchases, possibly reducing GDP growth. The RAC has advised drivers to plan refuelling strategically and employ price-checking tools to identify the lowest-priced local fuel retailers, though these approaches deliver modest help 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 across all 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 advised to adopt a more strategic approach 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 local region. Whilst such measures offer only modest savings, they can build substantially over time. Drivers should also consider whether unnecessary trips can be postponed or combined to lower total fuel usage. For those facing the Easter holidays, reserving travel arrangements early and filling up at cheaper locations before setting out on extended journeys could aid in lessening the burden of increased fuel costs on vacation finances.
- 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 embarking on extended Easter break trips
- Plan routes carefully to improve fuel economy and reduce total costs
