Petrol prices have breached the 150p-per-litre threshold for the first occasion in almost two years, intensifying the argument over whether fuel retailers are taking advantage of surging oil costs for profit. 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 pushed up by £10 to the price of topping up a typical family car in just a month, follow geopolitical tensions in the Middle East that flared up a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of excessive profit-taking, instead criticising ministers for wrongly accusing at forecourt operators facing constrained supply chains.
The 150p ceiling surpassed
The milestone marks a important juncture for British motorists, who have watched fuel costs climb steadily since the regional tensions in the Middle East 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 fuel—nearly £10 more than just a month earlier. The RAC has characterised the breach of 150p as an unwelcome milestone that will sting households already struggling with the cost-of-living crisis. The increases are especially badly timed, arriving just as families start planning their Easter getaways and summer breaks, when fuel demand traditionally peaks.
Whilst the current prices remain below the record highs witnessed after Russia’s attack on Ukraine in 2022, the swift increase has reignited concerns about affordability and accessibility. Diesel has fared even worse, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s analysis shows that unleaded petrol has risen 17p per litre in the same period. With distribution networks already strained and some petrol stations reporting brief shutdowns caused by unusually high demand, the mix of higher prices and possible supply problems threatens to worsen challenges for motorists throughout the nation.
- Unleaded fuel now 17p costlier per litre than pre-conflict levels
- Diesel prices have increased by 35p per litre since the tensions started
- Filling a family car costs roughly £9.50 more than a month earlier
- Prices stay below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back against state claims
The growing row over fuel pricing has exposed a growing rift between the government and forecourt operators, who argue they are being unfairly scapegoated 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 major chains like Asda have insisted that margins have actually compressed during the latest surge, leaving scant scope 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 consumer views of government competence.
The CMA has announced it will strengthen monitoring of the fuel sector, signalling that regulatory oversight will increase. Yet fuel retailers argue this heightened oversight misses the core issue: they are reacting to genuine supply constraints and wholesale price fluctuations, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton highlighted that the government itself benefits substantially from fuel duty and VAT, possibly gaining more from the price spike than fuel retailers. This observation has added an awkward element to the discussion, suggesting that government criticism may overlook the state’s own financial interests in elevated fuel costs.
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 categorically rejected suggestions that the chain is exploiting the crisis, stressing instead that fuel volumes have increased substantially, with demand substantially outstripping available supply. He conceded that a small number of pumps have briefly stopped operating due to unusually high customer demand, but insisted that Asda has not shut down any petrol stations completely. The company expects affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations highlight a critical difference between profit-seeking and supply management. When demand surges unexpectedly, as has occurred in the wake of the regional tensions in the Middle East, retailers can find it difficult to maintain normal stock levels despite their best efforts. The Petrol Retailers Association supported this account, recognising sporadic supply problems at “a small number of forecourts for one retailer” but asserting that overall UK supply is operating as usual. The body recommended drivers that there is no need to change their normal purchasing habits, suggesting that accounts of supply issues are overstated or isolated.
Middle East conflicts pushing wholesale prices
The sharp rise in petrol and diesel prices has been firmly tied to mounting instability in the Middle East, following armed operations between the US, Israel and Iran approximately a month ago. These political changes have generated considerable instability in worldwide petroleum markets, driving wholesale prices higher and forcing retailers to hand on rises to consumers at fuel stations. The RAC has noted that regular fuel has climbed by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts caution that ongoing tensions could drive prices upward still, particularly if distribution channels through essential bottlenecks become disrupted.
The timing of these price increases has proven especially difficult for British drivers approaching the Easter holidays. Families planning road trips face considerably elevated fuel bills, with the cost of filling a typical family car now exceeding £82 for standard petrol—roughly £9.50 higher than just a month before. Diesel cars 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 mark as an “unwelcome milestone,” underlining the cumulative impact on household budgets 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 |
Oil market fluctuations plus political tensions
Global oil sectors stay highly sensitive to Middle Eastern events, with crude prices mirroring investor concerns about possible disruptions to supply. The attacks on Iran have heightened doubt about regional stability, leading traders to require premium rates on petroleum contracts. Whilst current prices remain below the exceptional highs witnessed following Russia’s military incursion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is worrying. Energy analysts suggest that any further escalation in conflict could spark additional price spikes, especially if major shipping routes or production facilities face disruption.
Government revenue and impact on consumers
As petrol prices continue their upward trajectory, the government has been placed in an difficult situation. 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 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 accusing retailers of exploiting the crisis, the government should acknowledge its own windfall from higher fuel prices.
The more extensive financial consequences transcend individual household budgets to encompass inflationary forces across the entire economy. Higher fuel costs feed through supply chains, impacting haulage expenses for commodities and services. Small businesses relying on high-fuel activities face particular hardship, with freight operators and logistics providers bearing substantial cost rises. Consumer purchasing capacity declines as households allocate funds toward petrol pumps rather than alternative spending, possibly reducing GDP growth. The RAC has recommended vehicle owners to schedule fuel purchases carefully and utilise fuel-price apps to identify the lowest-priced local fuel retailers, though such measures deliver modest help against the broader price surge.
- Government collects fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures intensify as transport costs rise throughout various sectors and industries
- Consumer discretionary spending falls as family finances prioritise essential fuel purchases
What motorists should do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being urged to adopt a more strategic approach to refuelling. The RAC has stressed the significance of planning journeys carefully and utilising price-comparison applications to find the lowest-priced fuel retailers in their local area. Whilst such measures offer only modest savings, they can add up considerably over time. Drivers ought to also think about whether non-essential 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 undertaking longer drives could assist in reducing the effect of higher petrol rates on vacation finances.
- Use petrol price finder tools to find the cheapest local forecourts before filling up
- Combine journeys where feasible and defer non-essential trips to lower fuel usage
- Fill up at cheaper locations before setting out on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and reduce total costs
