Petrol prices have breached the 150p-per-litre mark for the first time in nearly two years, fuelling the argument over whether petrol stations are capitalising on rocketing oil costs for financial gain. The average price for unleaded petrol rose past the symbolic threshold on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The steep rises, which have pushed up by £10 to the cost of filling a typical family car in only a month, follow geopolitical tensions in the region that erupted a month ago when the US and Israel launched attacks on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of excessive profit-taking, instead pointing to ministers for wrongly accusing at petrol station owners battling constrained supply chains.
The 150p ceiling surpassed
The milestone represents a significant moment for British motorists, who have watched fuel costs climb steadily since the Middle East tensions began. For a typical family car requiring a 55-litre fuel tank, drivers are now facing bills exceeding £82 for a complete tank of unleaded petrol—nearly £10 more than just four weeks earlier. The RAC has characterised the breach of 150p as an unwelcome milestone that will affect households already grappling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families commence planning their Easter getaways and summer holidays, when fuel demand conventionally surges.
Whilst the present prices remain below the peak levels witnessed after Russia’s attack on Ukraine in 2022, the rapid acceleration has revived worries regarding affordability and accessibility. Diesel has struggled even more, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s findings reveals that unleaded petrol has increased 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 higher prices and potential availability issues threatens to compound difficulties for drivers across the country.
- 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 roughly £9.50 more than a month earlier
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retail sector pushes back against government accusations
The intensifying row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances they cannot influence. Ministers have adopted progressively confrontational 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 self-defeating. The Petrol Retailers Association and large retailers like Asda have insisted that margins have genuinely tightened 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 directly impact household budgets and popular understanding of government competence.
The Competition and Markets Authority has announced it will strengthen oversight of the petrol market, signalling that regulatory scrutiny will tighten. Yet retailers argue this heightened oversight overlooks the core issue: they are reacting to real supply limitations and wholesale price fluctuations, not creating false shortages for profit. Asda’s Allan Leighton pointed out that the government itself profits significantly from fuel duty and value-added tax, potentially earning more from the price surge than fuel retailers. This remark has introduced an awkward element to the discussion, implying that government criticism may overlook the government’s own financial interests in elevated fuel costs.
Asda’s defence and procurement pressures
As the UK’s second largest fuel supplier, 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 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 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 remarks underscore a important separation between profit-seeking and supply management. When demand spikes dramatically, as took place after the Middle East tensions, retailers can find it difficult to maintain normal stock levels despite making every effort. The Association of Petrol Retailers backed up this claim, admitting sporadic supply problems at “a small number of forecourts for one retailer” but maintaining that supply across the UK is functioning smoothly. The body counselled drivers that there is no reason to change their normal purchasing habits, indicating that accounts of supply issues have been inflated or isolated.
Middle Eastern instability increasing bulk pricing
The notable surge in petrol and diesel prices has been directly linked to rising conflict in the Middle East, following armed operations between the US, Israel and Iran about a month prior. These political changes have generated considerable instability in international energy markets, forcing wholesale costs up and compelling retailers to transfer costs to consumers on the forecourt. The RAC has noted that standard petrol has climbed by 17p per litre since the conflict began, whilst diesel has increased even more dramatically by 35p per litre. Analysts alert that additional geopolitical disruption could push prices higher still, particularly if supply routes through key passages become disrupted.
The scheduling of these price increases has turned out to be especially difficult for British drivers approaching the Easter break. Families organising road trips encounter 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 before. Diesel-powered vehicles are affected even more severely, with a complete fill-up now costing over £97, constituting a £19 increase. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting 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 |
Crude oil fluctuations plus geopolitical factors
Global oil markets stay highly responsive to Middle Eastern developments, with crude prices reflecting investor worries about potential disruptions to supply. The attacks on Iran have increased uncertainty about regional stability, prompting traders to demand risk premiums on petroleum agreements. Whilst current prices stay below the exceptional highs witnessed following Russia’s invasion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is concerning. Energy analysts suggest that any additional escalation in hostilities could trigger further price increases, especially if major shipping routes or production facilities experience disruption.
Government revenue 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 surge in pump prices. Excise duty on fuel remains fixed regardless of the wholesale cost, 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, proposing that before blaming retailers for taking advantage of the crisis, the government should acknowledge its own windfall from higher fuel prices.
The wider financial consequences extend beyond domestic spending limits to encompass price increases across all economic sectors. Higher fuel costs pass through distribution networks, impacting transport expenses for goods and services. SMEs reliant on fuel-intensive operations face particular hardship, with haulage companies and courier services absorbing significant cost increases. Household purchasing power diminishes as households allocate funds toward petrol pumps rather than alternative spending, possibly reducing economic growth. The RAC has counselled drivers to plan refuelling strategically and employ price-checking tools to locate the most affordable nearby petrol stations, though these steps offer only marginal relief against the overall cost escalation.
- Government collects fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain cost pressures increase as transport costs rise across all sectors and industries
- Consumer discretionary spending declines as family finances focus on necessary fuel spending
What motorists should do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being encouraged to take a more calculated approach to refuelling. The RAC has highlighted the value of mapping out trips methodically and leveraging price-comparison platforms to locate the most affordable petrol stations in their local area. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers should also consider whether discretionary journeys can be postponed or combined to minimise overall fuel expenditure. For those preparing for the Easter break, reserving travel arrangements early and filling up at cheaper locations before setting out on extended journeys could assist in reducing the effect of higher petrol rates on holiday budgets.
- Use petrol price finder tools to locate the cheapest local forecourts before refuelling
- Combine journeys where possible and defer non-essential trips to reduce consumption
- Fill up at more affordable stations before setting out on longer Easter holiday journeys
- Plan routes carefully to improve fuel economy and reduce total costs
