Petrol prices have exceeded the 150p-per-litre milestone for the first occasion in nearly two years, intensifying the argument over whether petrol stations are exploiting rocketing oil costs for financial gain. The typical cost for unleaded petrol exceeded the important mark on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The sharp increases, which have increased by around £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 chief executive Allan Leighton has strongly denied accusations of profiteering, instead criticising ministers for unfairly “pointing the finger” at forecourt operators battling limited supply chains.
The 150p ceiling surpassed
The milestone marks a significant moment for British motorists, who have observed fuel costs increase progressively since the Middle East tensions began. For a typical family car requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has termed the breach of 150p as an unwanted milestone that will impact families already dealing with the rising cost of living. The increases are remarkably poorly timed, arriving just as families begin planning their Easter trips and summer holidays, when demand for fuel typically reaches its highest levels.
Whilst the present prices stay below the record highs recorded following Russia’s attack on Ukraine in 2022, the rapid acceleration has reignited concerns about affordability and accessibility. Diesel has performed considerably worse, climbing 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s findings reveals that petrol has increased 17p per litre in the same period. With distribution networks already strained and some forecourts experiencing brief shutdowns caused by unusually high demand, the combination of higher prices and possible supply problems threatens to worsen challenges for drivers across the country.
- Unleaded petrol now 17p more expensive per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since tensions began
- Filling up a family car costs roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back against state claims
The growing row over fuel pricing has exposed a deepening split between the government and forecourt operators, who argue they are being wrongly targeted for circumstances they cannot influence. Ministers have adopted progressively confrontational 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 unhelpful. The Petrol Retailers Association and major chains like Asda have insisted that margins have truly narrowed during the current increase, leaving little room for profiteering even if operators were inclined to do so. This blame-shifting reflects the political importance surrounding fuel costs, which significantly affect household budgets and public perception of government competence.
The Competition and Markets Authority has stated it will strengthen monitoring of the petrol market, signalling that regulatory scrutiny will increase. Yet retailers contend this increased scrutiny overlooks the fundamental point: they are reacting to real supply limitations and wholesale price fluctuations, not creating false shortages for profit. Asda’s Allan Leighton pointed out that the government itself benefits substantially from fuel duty and VAT, potentially earning more from the price surge than fuel retailers. This remark has introduced an awkward element to the debate, suggesting that criticism from Westminster may overlook the government’s own financial interests in elevated fuel costs.
Asda’s defense and logistics challenges
As the UK’s second largest fuel supplier, Asda has positioned itself at the heart of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, emphasising instead that fuel volumes have increased substantially, with demand substantially outstripping available supply. He conceded that a small number of pumps have temporarily gone out of service due to exceptional customer demand, but insisted that Asda has not closed any forecourts entirely. The company expects affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks highlight a key separation between profit-seeking and inventory control. When demand spikes dramatically, as has occurred following the Middle East tensions, retailers can struggle to keep up inventory levels in spite of their efforts. The Association of Petrol Retailers backed up this claim, acknowledging sporadic supply problems at “a handful of forecourts for one retailer” but insisting that overall UK supply is functioning smoothly. The association advised drivers that there is no need to alter their usual purchasing habits, indicating that accounts of supply issues have been inflated or isolated.
Middle Eastern conflicts increasing bulk pricing
The notable surge in petrol and diesel prices has been firmly tied to escalating tensions in the Middle East, following combat actions between the US, Israel and Iran approximately a month ago. These regional shifts have generated considerable instability in international energy markets, pushing wholesale costs upwards and forcing retailers to pass increases through to consumers on the forecourt. The RAC has recorded that unleaded petrol has increased by 17p per litre since hostilities started, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that ongoing tensions could force prices up still, notably if supply routes through essential bottlenecks become interrupted.
The timing of these cost rises has proven especially difficult for British drivers heading into the Easter holidays. Families organising driving holidays encounter considerably elevated petrol costs, with the cost of topping up a standard family vehicle now surpassing £82 for unleaded petrol—roughly £9.50 higher than just a month earlier. Diesel cars are affected even more severely, with a full tank now running to over £97, representing a £19 rise. 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 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 |
Oil market volatility and geopolitical factors
Global oil sectors stay highly sensitive to Middle Eastern developments, with crude prices reflecting investor worries about potential disruptions to supply. The attacks on Iran have heightened uncertainty about stability in the region, prompting traders to require premium rates on petroleum agreements. Whilst current prices remain below the exceptional highs seen after Russia’s military incursion of Ukraine—when wholesale costs reached record highs—the trajectory is concerning. Energy analysts indicate that any additional escalation in hostilities could trigger additional price spikes, particularly if major transport corridors or manufacturing plants face disruption.
Government revenue 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 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 no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own windfall from higher fuel prices.
The broader financial consequences go further than individual household budgets to cover inflation pressures across the entire economy. Elevated petrol prices pass through supply chains, impacting delivery costs for products and services. Smaller enterprises dependent on fuel-intensive operations encounter considerable challenges, with freight operators and logistics providers bearing substantial cost rises. Household purchasing power falls as people channel spending into fuel purchases rather than alternative spending, possibly reducing economic expansion. The RAC has recommended vehicle owners to plan refuelling strategically and utilise fuel-price apps to identify the lowest-priced local fuel retailers, though these steps provide limited assistance against the wider price increase.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain inflation pressures increase as transport costs rise across all sectors and industries
- Consumer non-essential spending declines as household budgets prioritise essential fuel purchases
What drivers should do now
With petrol prices showing no immediate signs of retreating, motorists are being advised to take a more calculated approach to refuelling. The RAC has emphasised the importance of mapping out trips methodically and leveraging price-comparison platforms to find the lowest-priced fuel retailers in their local area. Whilst such measures offer only modest savings, they can build substantially over time. Drivers should also consider whether non-essential journeys can be deferred or consolidated to minimise overall fuel expenditure. For those facing the Easter holidays, booking travel plans in advance and topping up at budget-friendly forecourts before undertaking longer drives could aid in lessening the burden of increased fuel costs on holiday budgets.
- Use fuel price comparison apps to locate the cheapest local forecourts before refuelling
- Combine journeys where feasible and defer non-essential trips to lower fuel usage
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and minimise overall expenditure
