Petrol prices have breached the 150p-per-litre milestone for the first occasion in nearly two years, intensifying the debate over whether fuel retailers are capitalising on rocketing oil costs for financial gain. The average price for standard petrol climbed above the important mark on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The notable jumps, which have pushed up by £10 to the cost of filling a standard family vehicle in only a month, follow military tensions in the region that erupted a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has strongly denied accusations of profiteering, instead criticising ministers for unfairly “pointing the finger” at forecourt operators struggling with restricted supply networks.
The 150p threshold broken
The milestone constitutes a important juncture for British motorists, who have watched fuel costs increase progressively since the Middle East tensions began. For a standard family vehicle requiring a 55-litre 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 described the breach of 150p as an unwelcome milestone that will sting households already grappling with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families begin planning their Easter getaways and summer breaks, when demand for fuel typically reaches its highest levels.
Whilst the present prices remain below the record highs recorded after Russia’s attack on Ukraine in 2022, the swift increase has revived worries regarding affordability and accessibility. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s analysis reveals that unleaded petrol has increased 17p per litre in the same period. With distribution networks already strained and some forecourts experiencing temporary pump closures caused by exceptional demand, the combination of elevated costs and potential availability issues risks compound difficulties for motorists across the country.
- Unleaded petrol now 17p more expensive per litre than pre-conflict levels
- Diesel prices have increased by 35p per litre since tensions began
- Filling a family car costs roughly £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back against official allegations
The intensifying row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances outside their remit. Ministers have adopted increasingly combative 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 large retailers like Asda have insisted that margins have truly narrowed during the current increase, leaving scant scope for profiteering even if operators were willing to do so. This finger-pointing 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 monitoring of the fuel sector, signalling that regulatory scrutiny will tighten. Yet retailers contend this increased scrutiny overlooks the fundamental point: 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 VAT, potentially earning more from the price spike than fuel retailers. This remark has introduced an uncomfortable dimension to the debate, implying that criticism from Westminster may disregard the state’s own financial interests in higher fuel prices.
Asda’s defence and supply pressures
As the UK’s second-biggest fuel retailer, Asda has found itself at the heart of the pricing row. Executive chairman Leighton has firmly denied 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 temporarily gone out of service 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 temporary rather than structural.
Leighton’s remarks highlight a critical separation between profit-seeking and supply management. When demand spikes dramatically, as took place in the wake of the Middle East tensions, retailers can struggle to maintain standard stock levels despite their best efforts. The Association of Petrol Retailers corroborated this claim, acknowledging isolated availability issues at “a small number of forecourts for one retailer” but maintaining that the UK’s overall supply is operating as usual. The association advised drivers that there is no requirement to alter their usual shopping behaviour, implying that claims of stock problems have been exaggerated or confined to specific areas.
Middle East instability increasing bulk pricing
The sharp rise in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, following combat actions between the US, Israel and Iran roughly a month earlier. These regional shifts have created significant uncertainty in international energy markets, pushing wholesale costs upwards and compelling retailers to transfer costs to consumers at fuel stations. The RAC has recorded that unleaded petrol has climbed by 17p per litre since hostilities started, whilst diesel has increased even more dramatically by 35p per litre. Analysts warn that further regional instability could force prices up still, particularly if supply routes through essential bottlenecks become interrupted.
The scheduling of these price increases has turned out to be especially difficult for British drivers approaching the Easter break. Families planning road trips encounter considerably elevated petrol costs, with the cost of filling a typical family car now surpassing £82 for unleaded petrol—roughly £9.50 more than just a month before. Diesel-powered vehicles are affected to an even greater extent, with a full tank now costing over £97, constituting a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the cumulative impact on household budgets 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 sectors remain highly sensitive to Middle Eastern events, with crude prices mirroring investor worries about possible supply disruptions. The attacks on Iran have heightened doubt about stability in the region, prompting traders to demand premium rates on petroleum agreements. Whilst current prices stay below the extraordinary peaks seen after Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts suggest that any further escalation in hostilities could spark additional price spikes, 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 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 spike in fuel costs. 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 chief executive Allan Leighton pointedly noted 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 broader economic implications go further than individual household budgets to include price increases throughout the wider economy. Increased fuel expenses flow through supply networks, impacting transport expenses for commodities and services. Small businesses dependent on fuel-heavy processes experience significant difficulty, with haulage companies and logistics providers absorbing significant cost increases. Consumer purchasing capacity falls as households allocate funds into fuel purchases rather than different expenditures, potentially dampening economic growth. The RAC has recommended drivers to organise refuelling efficiently and employ price-checking tools to find the lowest-priced local fuel retailers, though these steps offer only marginal relief against the broader price surge.
- Government receives set excise tax 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 declines as family finances prioritise necessary fuel spending
What drivers ought to do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to implement a more planned strategy to refuelling. The RAC has highlighted the value of planning journeys carefully and leveraging price-comparison platforms to find the lowest-priced fuel retailers in their local region. Whilst such measures offer only modest savings, they can add up considerably over time. Drivers may also wish to evaluate whether discretionary journeys can be delayed or merged to minimise overall fuel expenditure. For those dealing with the Easter period, arranging travel plans ahead of time and topping up at budget-friendly forecourts before setting out on extended journeys could aid in lessening the burden of increased fuel costs on holiday spending.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before refuelling
- Merge trips where possible and defer non-essential trips to reduce consumption
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Plan routes carefully to improve fuel economy and reduce total costs
