Petrol prices have surpassed the 150p-per-litre threshold for the first time in nearly two years, heightening the argument over whether petrol stations are taking advantage of surging oil costs for profit. The average price for standard petrol rose past the important mark on Friday, whilst diesel surged past 177p, based on figures from the RAC. The notable jumps, which have pushed up by £10 to the price of topping up a typical family car in just a month, follow geopolitical tensions in the Middle East that flared up a month ago when the US and Israel conducted strikes on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of excessive profit-taking, instead criticising ministers for unfairly “pointing the finger” at forecourt operators facing limited supply chains.
The 150p level exceeded
The milestone represents a significant moment 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 tank, drivers are now dealing with expenses 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 affect households already grappling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families commence planning their Easter getaways and summer breaks, when fuel demand typically reaches its highest levels.
Whilst the present prices stay below the peak levels witnessed after Russia’s invasion of Ukraine in 2022, the swift increase has revived concerns about cost and availability. Diesel has fared even worse, rising 35p per litre since the conflict began and now standing at 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 experiencing temporary pump closures caused by unusually high demand, the mix of elevated costs and potential availability issues threatens to compound difficulties for drivers throughout the nation.
- Unleaded petrol now 17p costlier per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since the tensions started
- Filling up a family car costs roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back against government accusations
The escalating row over fuel pricing has exposed a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances they cannot influence. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers amid the pricing spike. 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 recent spike, leaving scant scope for profiteering even if operators were disposed to act. This mutual recrimination reflects the political importance surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The CMA has stated it will strengthen oversight of the petrol market, indicating that regulatory oversight will increase. Yet retailers contend this increased scrutiny overlooks the fundamental point: they are reacting to real supply limitations and wholesale price fluctuations, not engineering false shortages for profit. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and value-added tax, possibly gaining more from the price surge than fuel retailers. This remark has introduced an awkward element to the discussion, suggesting that criticism from Westminster may overlook the state’s own economic stakes in elevated fuel costs.
Asda’s defence and procurement pressures
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 taking advantage of the situation, stressing instead that fuel volumes have surged significantly, with demand substantially outstripping available supply. He conceded that a small number of pumps have briefly stopped operating due to unusually high customer demand, but maintained that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to resume service following its subsequent delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s remarks highlight a critical difference between profit-seeking and inventory control. When demand surges unexpectedly, as took place in the wake of the regional tensions in the Middle East, retailers may find it challenging to maintain normal stock levels despite making every effort. The Association of Petrol Retailers backed up this claim, admitting isolated availability issues at “a handful of forecourts for one retailer” but maintaining that supply across the UK is operating as usual. The association advised drivers that there is no need to modify their regular shopping behaviour, suggesting that reports of shortages are overstated or isolated.
Middle East tensions increasing wholesale prices
The sharp rise in petrol and diesel prices has been firmly tied to escalating tensions in the Middle East, in the wake of armed operations between the US, Israel and Iran approximately a month ago. These regional shifts have produced substantial volatility in global oil markets, pushing wholesale costs upwards and forcing retailers to transfer costs to consumers on the forecourt. The RAC has recorded that standard petrol has climbed by 17p per litre since the conflict began, whilst diesel has increased even more dramatically by 35p per litre. Analysts caution that further regional instability could force prices up still, especially should transport corridors through key passages become interrupted.
The timing of these cost rises has proven especially difficult for British drivers approaching the Easter holidays. Families planning driving holidays face considerably elevated petrol costs, with the expense of topping up a standard family vehicle now surpassing £82 for standard petrol—roughly £9.50 more than just a month before. Diesel cars are impacted to an even greater extent, with a full tank now running to 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 should 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 fluctuations plus political tensions
Global oil markets stay highly responsive to Middle Eastern events, with crude prices mirroring investor worries about potential disruptions to supply. The attacks on Iran have increased uncertainty about regional stability, leading traders to demand risk premiums on petroleum agreements. Whilst current prices stay below the exceptional highs witnessed following Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is worrying. Energy analysts suggest that any additional escalation in hostilities could trigger additional price spikes, especially if major transport corridors or production facilities face disruption.
Public finances and consumer impact
As petrol prices maintain their upward climb, the government has been placed in an difficult situation. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has quietly benefited substantially from the spike in fuel costs. Excise duty on fuel stays constant regardless of the market price, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own gains from elevated petrol costs.
The broader economic implications extend beyond individual household budgets to encompass price increases across the entire economy. Higher fuel costs flow through supply networks, affecting transport expenses for goods and services. SMEs reliant on high-fuel activities face particular hardship, with haulage companies and courier services bearing substantial cost rises. Consumer purchasing capacity diminishes as households allocate funds into fuel purchases rather than different expenditures, likely slowing economic growth. The RAC has advised drivers to schedule fuel purchases carefully and employ price-checking tools to locate the lowest-priced local fuel retailers, though these steps offer only marginal relief against the wider price increase.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise across all sectors and industries
- Consumer discretionary spending falls as household budgets focus on essential fuel purchases
What motorists ought to do at present
With petrol prices showing no immediate signs of retreating, motorists are being advised to implement a more planned strategy to refuelling. The RAC has highlighted the value of carefully planning journeys and using price-comparison tools to locate the most affordable petrol stations in their local area. Whilst such approaches provide only marginal gains, they can build substantially over time. Drivers ought to also think about whether non-essential journeys can be postponed or combined to minimise overall fuel expenditure. For those facing the Easter holidays, booking travel plans in advance and filling up at cheaper locations before embarking on longer trips could assist in reducing the effect of increased fuel costs on holiday budgets.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before refuelling
- Merge trips where feasible and postpone non-essential trips to reduce consumption
- Fill up at cheaper locations before embarking on extended Easter break trips
- Plan routes carefully to maximise fuel efficiency and minimise overall expenditure
