Petrol prices have breached the 150p-per-litre threshold for the first time in nearly two years, intensifying the discussion over whether petrol stations are capitalising on 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 added nearly £10 to the price of topping up a standard family vehicle in only a month, follow regional conflict in the Middle East that erupted a month ago when the US and Israel carried out operations on Iran. Asda’s chief executive Allan Leighton has firmly rejected accusations of profiteering, instead pointing to ministers for unjustly blaming at forecourt operators battling restricted supply networks.
The 150p level exceeded
The milestone constitutes a important juncture for British motorists, who have seen fuel costs increase progressively since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre tank, drivers are now encountering costs exceeding £82 for a full tank of unleaded petrol—nearly £10 more than just a month earlier. The RAC has characterised the breach of 150p as an unwelcome milestone that will impact families already dealing with the cost-of-living crisis. The increases are especially badly timed, arriving just as families start planning their Easter trips and summer holidays, when demand for fuel traditionally peaks.
Whilst the current prices stay below the record highs recorded following 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 since the conflict began and now standing at over 177p. The RAC’s analysis shows that petrol has increased 17p per litre in the same period. With distribution networks already strained and some forecourts experiencing temporary pump closures due to unusually high demand, the mix of elevated costs and possible supply problems threatens to worsen challenges for motorists across the country.
- Unleaded petrol now 17p costlier per litre than levels before the conflict
- 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 remain below Ukraine invasion peaks but increasing at an alarming rate
Retailers challenge on official allegations
The escalating row over fuel pricing has revealed a widening divide between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances outside their remit. Ministers have adopted more aggressive language, warning retailers against attempting to “rip off” customers during the cost escalation. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have actually compressed during the recent spike, leaving little room for profiteering even if operators were disposed to act. This blame-shifting reflects the political importance surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The Competition and Markets Authority has stated it will intensify oversight of the petrol market, signalling that regulatory scrutiny will tighten. Yet fuel retailers contend this heightened oversight overlooks the fundamental point: they are reacting to real supply limitations and wholesale price movements, not engineering artificial scarcity for profit. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and value-added tax, potentially earning more from the price surge than fuel retailers. This observation has introduced an awkward element to the discussion, suggesting that criticism from Westminster may overlook the state’s own financial interests in higher fuel prices.
Asda’s defence and procurement pressures
As the UK’s second largest fuel supplier, Asda has positioned itself at the centre of the profiteering controversy. Executive chairman Leighton has categorically rejected suggestions that the chain is exploiting the crisis, emphasising instead that fuel volumes have surged significantly, 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 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 temporary rather than structural.
Leighton’s observations emphasise a important separation between profiteering and supply management. When demand surges unexpectedly, as has occurred following the regional tensions in the Middle East, retailers may find it challenging to maintain normal stock levels despite making every effort. The Petrol Retailers Association supported this account, recognising sporadic supply problems at “a small number of forecourts for one retailer” but insisting that the UK’s overall supply is operating as usual. The association recommended drivers that there is no need to change their normal buying patterns, implying that claims of stock problems have been inflated or isolated.
Middle East conflicts pushing wholesale prices
The sharp rise in petrol and diesel prices has been firmly tied to rising conflict in the Middle East, in the wake of combat actions between the US, Israel and Iran roughly a month earlier. These geopolitical developments have generated considerable instability in international energy markets, forcing wholesale costs up and forcing retailers to transfer costs to consumers on the forecourt. The RAC has documented that standard petrol has climbed by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that ongoing tensions could push prices higher still, especially should supply routes through essential bottlenecks become blocked.
The timing of these cost rises has proven especially difficult for British motorists approaching the Easter break. Families organising driving holidays encounter considerably elevated petrol costs, with the expense of filling a typical family car now surpassing £82 for unleaded petrol—roughly £9.50 higher than just a month earlier. Diesel cars are affected even more severely, with a complete fill-up now costing over £97, constituting a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the combined effect on family finances during what ought to be a period 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 mirroring investor worries about possible disruptions to supply. The attacks on Iran have increased uncertainty about regional stability, prompting traders to require premium rates on petroleum contracts. 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 conflict could spark additional price spikes, particularly 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 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 wholesale cost, meaning the government collects the same tax per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this inconsistency, suggesting that before accusing retailers of exploiting the crisis, the government should acknowledge its own windfall from higher fuel prices.
The broader economic effects transcend personal family finances to cover inflation pressures throughout the wider economy. Elevated petrol prices flow through distribution networks, impacting transport expenses for goods and services. SMEs dependent on fuel-heavy processes face particular hardship, with transport firms and logistics providers facing major expense increases. Household purchasing power diminishes as people channel spending to fuel stations rather than different expenditures, potentially dampening economic growth. The RAC has advised motorists to organise refuelling efficiently and utilise fuel-price apps to identify the lowest-priced local fuel retailers, 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 inflation pressures intensify as transport costs rise throughout various sectors and industries
- Consumer discretionary spending declines as family finances focus on essential fuel purchases
What drivers should do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being advised to take a more calculated approach to refuelling. The RAC has highlighted the value 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 build substantially over time. Drivers may also wish to evaluate whether discretionary journeys can be postponed or combined to minimise overall fuel expenditure. For those facing the Easter holidays, reserving travel arrangements early and refuelling at lower-cost stations before embarking on longer trips could help mitigate the impact of higher petrol rates on holiday spending.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before refuelling
- Combine journeys where feasible and defer non-essential trips to reduce consumption
- Fill up at more affordable stations before embarking on longer Easter holiday journeys
- Plan routes carefully to maximise fuel efficiency and reduce total costs
