Petrol prices have breached the 150p-per-litre milestone for the first occasion in almost two years, intensifying the argument over whether fuel retailers are exploiting soaring oil costs for profit. The typical cost for unleaded petrol exceeded the important mark on Friday, whilst diesel climbed above 177p, according to figures from the RAC. The steep rises, which have pushed up by £10 to the cost of filling a standard family vehicle in just a month, follow geopolitical tensions in the region that erupted a month ago when the US and Israel conducted strikes on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of excessive profit-taking, instead criticising ministers for wrongly accusing at forecourt operators facing constrained supply chains.
The 150p threshold broken
The milestone constitutes a significant moment for British motorists, who have watched fuel costs rise consistently 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 unwanted milestone that will affect households already struggling with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families commence planning their Easter getaways and summer holidays, when demand for fuel traditionally peaks.
Whilst the current prices remain below the record highs witnessed after Russia’s invasion of Ukraine in 2022, the rapid acceleration has revived concerns about affordability and accessibility. Diesel has performed considerably worse, rising 35p per litre following the conflict’s start and now reaching over 177p. The RAC’s analysis shows that petrol has risen 17p per litre in the identical timeframe. With distribution networks already strained and some petrol stations reporting temporary pump closures caused by exceptional demand, the mix of higher prices and possible supply problems risks worsen challenges for drivers throughout the nation.
- Unleaded fuel now 17p costlier per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since tensions began
- Filling a family car costs approximately £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back on government accusations
The intensifying row over fuel pricing has highlighted a deepening split between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances beyond their control. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers amid the cost escalation. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and large retailers like Asda have insisted that margins have actually compressed during the recent spike, leaving little room for profiteering even if operators were willing to do so. This finger-pointing reflects the political sensitivity surrounding fuel costs, which significantly affect household budgets and popular understanding of government competence.
The Competition and Markets Authority has stated it will strengthen monitoring of the petrol market, indicating that regulatory scrutiny will increase. Yet fuel retailers contend this increased scrutiny overlooks the core issue: they are responding to real supply limitations and wholesale price fluctuations, not creating false shortages for financial gain. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and value-added tax, possibly gaining more from the price spike than fuel retailers. This remark has added an awkward element to the discussion, 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 supplier, Asda has found itself at the centre of the pricing row. Executive chairman Leighton has categorically rejected 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 acknowledged 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 expects affected pumps to resume service following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s statements emphasise a critical separation between profiteering and inventory control. When demand increases sharply, as took place in the wake of the regional tensions in the Middle East, retailers may find it challenging to maintain standard stock levels in spite of their efforts. The Petrol Retailers Association corroborated this claim, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but asserting that overall UK supply is flowing normally. The association advised drivers that there is no requirement to change their normal purchasing habits, indicating that accounts of supply issues are overstated or localised.
Middle East conflicts driving wholesale costs
The marked increase in petrol and diesel prices has been closely connected to mounting instability in the Middle East, following armed operations between the US, Israel and Iran roughly a month earlier. These geopolitical developments have created significant uncertainty in worldwide petroleum markets, forcing wholesale costs up and obliging retailers to transfer costs to consumers at the pump. The RAC has documented that regular fuel has increased by 17p per litre since hostilities started, whilst diesel has increased even more dramatically by 35p per litre. Analysts alert that ongoing tensions could force prices up still, especially should supply routes through key passages become blocked.
The timing of these price increases has proven especially difficult for British motorists approaching the Easter break. Families organising 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 impacted to an even greater extent, with a full tank now costing over £97, representing a £19 increase. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the combined effect on family finances during what ought to 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 remain highly sensitive to Middle Eastern developments, with crude prices reflecting investor concerns about possible supply disruptions. The attacks on Iran have increased uncertainty about regional stability, prompting traders to demand premium rates on petroleum agreements. Whilst current prices stay below the extraordinary peaks witnessed following Russia’s invasion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is concerning. Energy analysts indicate that any additional escalation in hostilities could spark additional price spikes, especially if major transport corridors or production facilities experience disruption.
Public finances and impact on consumers
As petrol prices keep rising steadily, the government has found itself in an difficult situation. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has quietly benefited substantially from the surge in pump prices. Excise duty on fuel stays constant regardless of the market price, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton deliberately highlighted this inconsistency, suggesting that before accusing retailers of exploiting the crisis, the government ought to recognise its own gains from elevated petrol costs.
The broader financial consequences go further than domestic spending limits to cover inflation pressures across all economic sectors. Increased fuel expenses feed through supply networks, impacting transport expenses for commodities and services. Smaller enterprises relying on high-fuel activities experience significant difficulty, with transport firms and logistics providers facing major expense increases. Household purchasing power falls as families redirect money into fuel purchases rather than other purchases, likely slowing GDP growth. The RAC has advised vehicle owners to schedule fuel purchases carefully and use price-comparison applications to find the cheapest local forecourts, though these approaches deliver modest help against the overall cost escalation.
- Government collects set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise across all sectors and industries
- Consumer non-essential spending declines as household budgets focus on necessary fuel spending
What motorists ought to do now
With petrol prices displaying no immediate prospect of falling, motorists are being advised to take a more calculated approach to refuelling. The RAC has stressed the significance of planning journeys carefully and utilising price-comparison applications to locate the most affordable petrol stations in their local area. Whilst such approaches provide only marginal gains, they can accumulate meaningfully over time. Drivers should also consider whether unnecessary trips can be deferred or consolidated to reduce overall fuel consumption. For those facing the Easter holidays, reserving travel arrangements early and topping up at budget-friendly forecourts before embarking on longer trips could aid in lessening the burden of elevated pump prices on vacation finances.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before filling up
- Combine journeys where possible and postpone unnecessary journeys to reduce consumption
- 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
