Petrol prices have surpassed the 150p-per-litre milestone for the first occasion in almost two years, fuelling the argument over whether fuel retailers are taking advantage of surging oil costs for financial gain. The average price for standard petrol exceeded the important mark on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The notable jumps, which have added nearly £10 to the cost of filling a standard family vehicle in just a month, follow military tensions in the region that broke out a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of profiteering, instead blaming ministers for unfairly “pointing the finger” at forecourt operators battling restricted supply networks.
The 150p barrier breached
The milestone represents a important juncture for British motorists, who have observed fuel costs increase progressively since the Middle East tensions began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now encountering costs exceeding £82 for a full 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 affect households already dealing with the rising cost of living. 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 remain below the record highs witnessed after Russia’s attack on Ukraine in 2022, the swift increase has revived worries regarding cost and availability. Diesel has struggled even more, climbing 35p per litre since the conflict began and now standing at over 177p. The RAC’s analysis reveals that unleaded petrol has risen 17p per litre in the same period. With distribution networks already strained and some forecourts reporting brief shutdowns due to exceptional demand, the mix of elevated costs and possible supply problems threatens to compound difficulties for drivers throughout the nation.
- Unleaded petrol now 17p costlier per litre than levels before the conflict
- Diesel costs have risen by 35p per litre since the tensions started
- Filling up 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 state claims
The growing row over fuel pricing has highlighted 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 amid the pricing spike. 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 current increase, leaving minimal space for profiteering even if operators were disposed to act. This mutual recrimination reflects the public concern surrounding fuel costs, which directly impact household budgets and public perception of government competence.
The Competition and Markets Authority has stated it will strengthen oversight of the petrol market, indicating that regulatory scrutiny will increase. Yet fuel retailers contend this increased scrutiny overlooks the fundamental point: they are reacting to genuine supply constraints and wholesale price fluctuations, not engineering false shortages for profit. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and VAT, possibly gaining more from the price spike than retailers do. This observation has added an uncomfortable dimension to the discussion, suggesting that criticism from Westminster may disregard the state’s own economic stakes in higher fuel prices.
Asda’s defence and supply pressures
As the UK’s second-biggest fuel retailer, Asda has found itself at the heart 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 surged significantly, with demand far exceeding 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 shut down any petrol stations completely. The company anticipates the affected pumps to return to operation following its next delivery, suggesting the disruptions are short-term rather than long-term.
Leighton’s observations highlight a key difference between profiteering and inventory control. When demand increases sharply, as has happened following the Middle East tensions, retailers can struggle to maintain standard stock levels in spite of their efforts. The Petrol Retailers Association backed up this claim, acknowledging isolated availability issues at “a handful of forecourts for one retailer” but maintaining that overall UK supply is functioning smoothly. The body counselled drivers that there is no requirement to change their normal purchasing habits, indicating that reports of shortages have been inflated or confined to specific areas.
Middle Eastern tensions driving wholesale costs
The notable surge in petrol and diesel prices has been directly linked to escalating tensions in the Middle East, following combat actions between the US, Israel and Iran roughly a month earlier. These political changes have generated considerable instability in global oil markets, pushing wholesale costs upwards and compelling retailers to hand on rises to consumers at the pump. The RAC has documented that regular fuel has increased by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts warn that further regional instability could push prices higher still, particularly if transport corridors through essential bottlenecks become interrupted.
The scheduling of these cost rises has turned out to be especially difficult for British drivers approaching the Easter break. Families planning driving holidays face significantly higher fuel bills, with the cost of topping up a standard family vehicle now exceeding £82 for standard petrol—roughly £9.50 more than just a month earlier. Diesel-powered vehicles are affected to an even greater extent, with a full tank now costing over £97, constituting a £19 increase. The RAC’s Simon Williams described the crossing of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the combined effect on household budgets 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 political tensions
Global oil markets stay highly responsive to Middle Eastern events, with crude prices reflecting investor worries about potential disruptions to supply. The attacks on Iran have increased uncertainty about stability in the region, leading traders to require risk premiums on petroleum agreements. Whilst current prices remain below the extraordinary peaks witnessed following 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, 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 been placed in an awkward position. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the spike in fuel costs. Excise duty on fuel remains fixed 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, proposing that before accusing retailers of exploiting the crisis, the government ought to recognise its own windfall from higher fuel prices.
The wider economic implications go further than domestic spending limits to cover inflationary forces across the entire economy. Higher fuel costs feed through distribution networks, influencing haulage expenses for commodities and services. Small businesses relying on fuel-heavy processes encounter considerable challenges, with freight operators and delivery services absorbing significant cost increases. Consumer spending power declines as households allocate funds to fuel stations rather than different expenditures, possibly reducing GDP growth. The RAC has recommended motorists to schedule fuel purchases carefully and use price-comparison applications to identify the most affordable nearby petrol stations, though these approaches deliver modest help against the wider price increase.
- Government collects fixed excise duty on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures intensify as transport costs rise across all sectors and industries
- Consumer discretionary spending declines as household budgets prioritise essential fuel purchases
What drivers should do at present
With petrol prices showing no immediate signs of retreating, motorists are being urged to take a more calculated approach to refuelling. The RAC has stressed the significance of planning journeys carefully and using price-comparison tools to identify the cheapest forecourts in their surrounding neighbourhood. Whilst such steps deliver only limited savings, they can build substantially over time. Drivers ought to also think about whether discretionary journeys can be deferred or consolidated to lower total fuel usage. For those preparing for the Easter break, arranging travel plans ahead of time and topping up at budget-friendly forecourts before setting out on extended journeys could help mitigate the impact of increased fuel costs on vacation finances.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before filling up
- Combine journeys where feasible and postpone 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 reduce total costs
