Petrol prices have surpassed the 150p-per-litre mark for the first time in almost two years, fuelling the discussion over whether fuel retailers are taking advantage of surging oil costs for financial gain. The average price for unleaded petrol exceeded the important mark on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The steep rises, which have increased by around £10 to the price of topping up a standard family vehicle in only a month, follow military tensions in the region that erupted a month ago when the US and Israel carried out operations on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of profiteering, instead criticising ministers for unfairly “pointing the finger” at forecourt operators facing restricted supply networks.
The 150p barrier breached
The milestone constitutes a important juncture for British motorists, who have seen fuel costs increase progressively since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre fuel 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 grappling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families commence planning their Easter getaways and summer holidays, when fuel demand conventionally surges.
Whilst the current prices stay below the peak levels recorded following Russia’s invasion of Ukraine in 2022, the swift increase has revived concerns about cost and availability. Diesel has performed considerably worse, climbing 35p per litre following the conflict’s start and now standing at 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 caused by exceptional demand, the mix of higher prices and potential availability issues risks compound difficulties for motorists throughout the nation.
- Unleaded fuel now 17p more expensive per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since tensions began
- Filling a family car costs roughly £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back on government accusations
The growing row over fuel pricing has revealed a widening divide between the government and forecourt operators, who argue they are being unjustly blamed for circumstances beyond their control. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers throughout the pricing spike. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the recent spike, leaving little room for profiteering even if operators were willing to do so. This mutual recrimination reflects the political sensitivity surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The Competition and Markets Authority has stated it will intensify oversight of the fuel sector, signalling that regulatory scrutiny will tighten. Yet fuel retailers argue this heightened oversight misses the fundamental point: they are responding to genuine supply constraints and wholesale price movements, not creating false shortages 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 remark has added an uncomfortable dimension to the debate, suggesting that criticism from Westminster may overlook the state’s own economic stakes in elevated fuel costs.
Asda’s defence and supply pressures
As the UK’s second-biggest 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 acknowledged 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 expects affected pumps to resume service following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s statements underscore a important separation between profit-seeking and inventory control. When demand spikes dramatically, as has occurred following the Middle East tensions, retailers can find it difficult to maintain normal stock levels despite making every effort. The Petrol Retailers Association supported this narrative, recognising sporadic supply problems at “a handful of forecourts for one retailer” but maintaining that the UK’s overall supply is functioning smoothly. The association counselled drivers that there is no requirement to change their normal purchasing habits, suggesting that claims of stock problems have been exaggerated or localised.
Middle Eastern conflicts pushing wholesale prices
The sharp rise in petrol and diesel prices has been directly linked to mounting instability in the Middle East, in the wake of military strikes between the US, Israel and Iran roughly a month earlier. These geopolitical developments have generated considerable instability in global oil markets, driving wholesale prices higher and obliging retailers to transfer costs to consumers at the pump. The RAC has recorded that standard petrol has climbed by 17p per litre since the fighting commenced, whilst diesel has increased even more dramatically by 35p per litre. Analysts alert that additional geopolitical disruption could drive prices upward still, particularly if supply routes through essential bottlenecks become blocked.
The timing of these cost rises has proven especially difficult for British motorists approaching the Easter holidays. Families planning road trips face significantly higher petrol costs, with the cost of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 higher than just a month before. Diesel-powered vehicles are impacted to an even greater extent, with a full tank now running to over £97, constituting a £19 rise. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre mark as an “unwelcome milestone,” underlining the cumulative impact on family finances during what ought to be a period 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 geopolitical factors
Global oil markets remain highly responsive to Middle Eastern developments, with crude prices mirroring investor concerns about potential supply disruptions. The attacks on Iran have increased uncertainty about regional stability, leading traders to require premium rates on petroleum agreements. Whilst current prices remain below the extraordinary peaks seen after Russia’s invasion of Ukraine—when wholesale costs reached record highs—the trajectory is concerning. Energy analysts suggest that any further escalation in conflict could spark further price increases, particularly if major transport corridors or production facilities experience disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has found itself in an awkward position. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel stays constant regardless of the market price, meaning the government receives identical duty per litre no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this inconsistency, 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 cover inflation pressures throughout the wider economy. Elevated petrol prices pass through supply chains, influencing haulage expenses for goods and services. SMEs dependent on high-fuel activities face particular hardship, with transport firms and logistics providers facing major expense increases. Household purchasing power diminishes as households allocate funds toward petrol pumps rather than different expenditures, potentially dampening GDP growth. The RAC has counselled motorists to plan refuelling strategically and use price-comparison applications to identify the cheapest local forecourts, though such measures provide limited assistance against the wider price increase.
- Government receives fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as shipping expenses rise across all sectors and industries
- Consumer non-essential spending falls as family finances focus on necessary fuel spending
What motorists should do now
With petrol prices displaying no immediate prospect of falling, motorists are being advised to implement a more planned strategy to refuelling. The RAC has emphasised the importance of carefully planning journeys and utilising price-comparison applications to identify the cheapest forecourts in their local area. Whilst such steps deliver only limited savings, they can add up considerably over time. Drivers may also wish to evaluate whether unnecessary trips can be delayed or merged to lower total fuel usage. For those facing the Easter holidays, booking travel plans in advance and filling up at cheaper locations before undertaking longer drives could help mitigate the impact of elevated pump prices on holiday budgets.
- Use petrol price finder tools to locate the cheapest local forecourts before filling up
- Merge trips where feasible and postpone non-essential trips to lower fuel usage
- Fill up at more affordable stations before embarking on longer Easter holiday journeys
- Map your journey with care to maximise fuel efficiency and reduce total costs
