Petrol prices have breached the 150p-per-litre threshold for the first occasion in almost two years, intensifying the debate over whether petrol stations are capitalising on surging oil costs for financial gain. The average price for standard petrol rose past the symbolic threshold on Friday, whilst diesel surged past 177p, according to figures from the RAC. The steep rises, which have added nearly £10 to the cost of filling a standard family vehicle in just a month, follow regional conflict in the Middle East that broke out a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has firmly rejected accusations of excessive profit-taking, instead pointing to ministers for wrongly accusing at forecourt operators struggling with constrained supply chains.
The 150p threshold broken
The milestone marks a important juncture for British motorists, who have seen fuel costs climb steadily 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 termed the breach of 150p as an unwelcome milestone that will impact families already grappling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families start planning their Easter getaways and summer holidays, when demand for fuel typically reaches its highest levels.
Whilst the present prices remain below the peak levels recorded following Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited concerns about cost and availability. Diesel has performed considerably worse, 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 supply chains already stretched and some petrol stations experiencing temporary pump closures due to unusually high demand, the mix of higher prices and possible supply problems risks worsen challenges for drivers across the country.
- Unleaded fuel now 17p costlier per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since tensions began
- Filling up a family car costs approximately £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back on state claims
The intensifying row over fuel pricing has highlighted a growing rift between the government and forecourt operators, who argue they are being wrongly targeted for circumstances outside their remit. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers amid the cost escalation. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and leading operators like Asda have insisted that margins have actually compressed during the latest surge, leaving minimal space for profiteering even if operators were willing to do so. This blame-shifting reflects the political sensitivity surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The CMA has announced it will intensify oversight of the petrol market, indicating that regulatory oversight will tighten. Yet retailers argue this increased scrutiny misses the fundamental point: they are reacting to genuine supply constraints and wholesale price fluctuations, not engineering false shortages for financial gain. Asda’s Allan Leighton pointed out that the state profits significantly from fuel duty and VAT, possibly gaining more from the price spike than fuel retailers. This remark has added an uncomfortable dimension to the discussion, suggesting that criticism from Westminster may overlook the state’s own financial interests in higher fuel prices.
Asda’s defense and logistics difficulties
As the UK’s second largest fuel retailer, Asda has found itself at the centre of the pricing row. 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 far exceeding available supply. He acknowledged that a small number of pumps have briefly stopped operating due to exceptional customer demand, but insisted that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations underscore a critical separation between profiteering and inventory control. When demand increases sharply, as has happened after the Middle East tensions, retailers may find it challenging to keep up stock levels despite their best efforts. The Association of Petrol Retailers corroborated this claim, acknowledging isolated availability issues at “a handful of forecourts for one retailer” but asserting that supply across the UK is flowing normally. The body counselled drivers that there is no requirement to modify their regular shopping behaviour, suggesting that accounts of supply issues are overstated or confined to specific areas.
Middle East conflicts increasing wholesale costs
The sharp rise in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, in the wake of armed operations between the US, Israel and Iran approximately a month ago. These political changes have produced substantial volatility in global oil markets, driving wholesale prices higher and compelling retailers to hand on rises to consumers on the forecourt. The RAC has noted that standard petrol has climbed by 17p per litre since the fighting commenced, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that additional geopolitical disruption could drive prices upward still, notably if supply routes through key passages become blocked.
The timing of these price increases has proven especially difficult for British motorists heading into the Easter holidays. Families planning road trips face considerably elevated petrol costs, with the expense of filling a typical family car now exceeding £82 for standard petrol—roughly £9.50 higher than just a month before. Diesel-powered vehicles are affected to an even greater extent, with a complete fill-up now running to over £97, representing a £19 rise. The RAC’s Simon Williams characterised the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the cumulative impact on family finances during what ought to 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 geopolitical factors
Global oil sectors remain highly sensitive to Middle Eastern events, with crude prices mirroring investor concerns about potential supply disruptions. 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 seen after Russia’s invasion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is concerning. Energy analysts indicate that any further escalation in hostilities could spark additional price spikes, particularly if major shipping routes or manufacturing plants face disruption.
Public finances and impact on consumers
As petrol prices keep rising steadily, the government has found itself in an awkward position. Whilst government officials have openly condemned fuel retailers for potential profiteering, the Treasury has quietly benefited substantially 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 deliberately highlighted this inconsistency, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own gains from elevated petrol costs.
The broader economic effects go further than personal family finances to include price increases across the entire economy. Higher fuel costs pass through supply chains, influencing haulage expenses for commodities and services. Small businesses relying on high-fuel activities experience significant difficulty, with transport firms and courier services absorbing significant cost increases. Consumer purchasing capacity falls as families redirect money to fuel stations rather than alternative spending, likely slowing GDP growth. The RAC has advised drivers to organise refuelling efficiently and use price-comparison applications to identify the lowest-priced local fuel retailers, though these steps deliver modest help against the wider price increase.
- Government collects fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending declines as household budgets focus on necessary fuel spending
What drivers ought to do at present
With petrol prices displaying no immediate prospect of falling, motorists are being encouraged to take a more calculated approach to refuelling. The RAC has stressed the significance of planning journeys carefully and leveraging price-comparison platforms to identify the cheapest forecourts in their local area. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers ought to also think about whether discretionary journeys can be postponed or combined to lower total fuel usage. For those preparing for the Easter break, reserving travel arrangements early and refuelling at lower-cost stations before undertaking longer drives could assist in reducing the effect of higher petrol rates on holiday budgets.
- Use fuel price comparison apps to locate the most affordable nearby petrol stations before filling up
- Combine journeys where feasible and defer unnecessary journeys to reduce consumption
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and minimise overall expenditure
