Petrol prices have breached the 150p-per-litre threshold for the first time in nearly two years, heightening the debate over whether fuel retailers are exploiting rocketing oil costs for financial gain. The typical cost for unleaded petrol exceeded the symbolic threshold on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The notable jumps, which have increased by around £10 to the price of topping up a typical family car in only a month, follow regional conflict in the Middle East that broke out a month ago when the US and Israel conducted strikes on Iran. Asda’s executive chairman Allan Leighton has strongly denied accusations of profiteering, instead blaming ministers for unjustly blaming at forecourt operators battling restricted supply networks.
The 150p threshold broken
The milestone marks a significant moment 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 dealing with expenses exceeding £82 for a full tank of unleaded petrol—nearly £10 more than just four weeks earlier. The RAC has termed the breach of 150p as an unwanted milestone that will affect households already struggling with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families begin planning their Easter trips and summer breaks, when fuel demand traditionally peaks.
Whilst the current prices stay below the peak levels recorded after Russia’s invasion of Ukraine in 2022, the swift increase has reignited concerns about cost and availability. Diesel has struggled even more, climbing 35p per litre since the conflict began and now reaching over 177p. The RAC’s findings shows that petrol has increased 17p per litre in the identical timeframe. With supply chains already strained and some petrol stations experiencing temporary pump closures caused by unusually high demand, the combination of elevated costs and potential availability issues risks compound difficulties for drivers throughout the nation.
- Unleaded fuel now 17p more expensive per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since the tensions started
- Filling up a family car costs approximately £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retailers challenge on official allegations
The growing row over fuel pricing has highlighted a growing rift between the government and forecourt operators, who argue they are being wrongly targeted for circumstances beyond their control. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers throughout the price surge. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and major chains like Asda have insisted that margins have truly narrowed during the latest surge, leaving little room for profiteering even if operators were willing to do so. This finger-pointing reflects the public concern surrounding fuel costs, which materially influence household budgets and popular understanding of government competence.
The Competition and Markets Authority has stated it will intensify monitoring of the fuel sector, indicating that regulatory scrutiny will increase. Yet fuel retailers argue this increased scrutiny overlooks the fundamental point: they are reacting to genuine supply constraints and wholesale price fluctuations, not creating artificial scarcity for profit. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and VAT, potentially earning more from the price spike than fuel retailers. This remark has added an uncomfortable dimension to the debate, implying that government criticism may overlook the state’s own economic stakes in higher fuel prices.
Asda’s defence and procurement pressures
As the UK’s second-biggest fuel retailer, Asda has found 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 exceptional 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 observations emphasise a important distinction between profiteering and supply management. When demand spikes dramatically, as has happened after the Middle East tensions, retailers may find it challenging to keep up inventory levels despite making every effort. The Association of Petrol Retailers supported this narrative, acknowledging isolated availability issues at “a handful of forecourts for one retailer” but asserting that supply across the UK is operating as usual. The association recommended drivers that there is no need to change their normal buying patterns, suggesting that accounts of supply issues have been inflated or isolated.
Middle East conflicts increasing bulk pricing
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 approximately a month ago. These geopolitical developments have produced substantial volatility in international energy markets, forcing wholesale costs up and compelling retailers to hand on rises to consumers on the forecourt. The RAC has noted that standard petrol has risen by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts alert that ongoing tensions could drive prices upward still, particularly if supply routes through critical chokepoints become interrupted.
The scheduling of these price increases has proven particularly painful for British motorists heading into the Easter break. Families planning road trips encounter considerably elevated fuel bills, with the expense of topping up a standard family vehicle now exceeding £82 for standard petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles are affected even more severely, with a full tank now running to 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 combined effect 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 |
Oil market fluctuations plus political tensions
Global oil markets stay highly responsive to Middle Eastern developments, with crude prices reflecting investor worries about possible disruptions to supply. The attacks on Iran have increased doubt about stability in the region, 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 hit unprecedented levels—the trajectory is concerning. Energy analysts suggest that any additional escalation in hostilities could trigger further price increases, particularly if major transport corridors or production facilities face disruption.
Government revenue and consumer impact
As petrol prices maintain their upward climb, the government has found itself in an difficult situation. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the spike in fuel costs. Excise duty on fuel remains fixed 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 pointedly noted this inconsistency, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own gains from elevated petrol costs.
The more extensive economic effects go further than domestic spending limits to cover inflationary forces throughout the wider economy. Elevated petrol prices flow through supply chains, influencing haulage expenses for goods and services. Smaller enterprises reliant on fuel-intensive operations face particular hardship, with transport firms and courier services bearing substantial cost rises. Consumer purchasing capacity declines as families redirect money into fuel purchases rather than different expenditures, potentially dampening GDP growth. The RAC has recommended motorists to organise refuelling efficiently and utilise fuel-price apps to identify the lowest-priced local fuel retailers, though these approaches offer only marginal relief against the overall cost escalation.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures intensify as shipping expenses rise across all sectors and industries
- Consumer non-essential spending falls as family finances focus on essential fuel purchases
What drivers should do now
With petrol prices showing no immediate signs of retreating, motorists are being urged to take a more calculated approach to refuelling. The RAC has highlighted the value of carefully planning journeys and using price-comparison tools to identify the cheapest forecourts in their surrounding neighbourhood. Whilst such steps deliver only limited savings, they can build substantially over time. Drivers should also consider whether discretionary journeys can be postponed or combined to reduce overall fuel consumption. For those facing the Easter holidays, booking travel plans in advance and topping up at budget-friendly forecourts before embarking on longer trips could aid in lessening the burden of increased fuel costs on holiday budgets.
- Use petrol price finder tools to find the cheapest local forecourts before refuelling
- Combine journeys where possible and defer unnecessary journeys to lower fuel usage
- Fill up at more affordable stations before embarking on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and reduce total costs
