Petrol prices have breached the 150p-per-litre milestone for the first occasion in almost two years, intensifying the discussion over whether petrol stations are taking advantage of soaring oil costs for profit. The typical cost for standard petrol rose past the important mark on Friday, whilst diesel climbed above 177p, based on figures from the RAC. The notable jumps, which have pushed up by £10 to the cost of filling a typical family car in only a month, follow regional conflict in the Middle East that erupted a month ago when the US and Israel conducted strikes on Iran. Asda’s executive chairman Allan Leighton has categorically refuted accusations of profiteering, instead blaming ministers for unjustly blaming at forecourt operators facing constrained supply chains.
The 150p threshold broken
The milestone marks a significant moment for British motorists, who have observed fuel costs climb steadily since the Middle East tensions began. For a typical family car requiring a 55-litre 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 described the breach of 150p as an unwelcome milestone that will sting households already grappling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families start planning their Easter getaways and summer breaks, when fuel demand conventionally surges.
Whilst the present prices stay below the peak levels witnessed following Russia’s attack on Ukraine in 2022, the swift increase has reignited concerns about affordability and accessibility. Diesel has struggled even more, climbing 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s analysis reveals that unleaded petrol has increased 17p per litre in the identical timeframe. With supply chains already stretched and some petrol stations reporting temporary pump closures caused by exceptional demand, the combination of elevated costs and possible supply problems risks compound difficulties for motorists throughout the nation.
- Unleaded petrol now 17p costlier per litre than pre-conflict levels
- Diesel prices have increased by 35p per litre since tensions began
- Filling a family car costs approximately £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back on state claims
The escalating row over fuel pricing has highlighted a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances outside their remit. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers throughout the price surge. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and counterproductive. The Petrol Retailers Association and major chains like Asda have insisted that margins have actually compressed during the latest surge, leaving little room for profiteering even if operators were disposed to act. This blame-shifting reflects the public concern surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The Competition and Markets Authority has announced it will strengthen monitoring of the petrol market, indicating that regulatory oversight will tighten. Yet fuel retailers contend this increased scrutiny overlooks the core issue: they are responding to genuine supply constraints and wholesale price fluctuations, not engineering artificial scarcity for profit. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and value-added tax, possibly gaining more from the price surge than retailers do. This observation has added an awkward element to the debate, implying that government criticism may overlook the government’s own financial interests in higher fuel prices.
Asda’s defence and supply difficulties
As the UK’s second-biggest fuel supplier, Asda has found itself at the heart of the profiteering controversy. 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 unusually high customer demand, but insisted that Asda has not closed any forecourts entirely. The company anticipates the affected pumps to return to operation following its next delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations highlight a key distinction between profiteering and inventory control. When demand spikes dramatically, as has happened in the wake of the Middle East tensions, retailers may find it challenging to keep up inventory levels despite making every effort. The Association of Petrol Retailers backed up this account, recognising isolated availability issues at “a handful of forecourts for one retailer” but asserting that overall UK supply is operating as usual. The association recommended drivers that there is no need to modify their regular shopping behaviour, suggesting that claims of stock problems have been inflated or isolated.
Middle Eastern instability increasing wholesale costs
The notable surge in petrol and diesel prices has been directly linked to escalating tensions in the Middle East, in the wake of military strikes between the US, Israel and Iran approximately a month ago. These geopolitical developments have created significant uncertainty in worldwide petroleum markets, pushing wholesale costs upwards and forcing retailers to transfer costs to consumers at fuel stations. The RAC has noted that regular fuel has risen by 17p per litre since the fighting commenced, whilst diesel has increased even more dramatically by 35p per litre. Analysts caution that ongoing tensions could push prices higher still, especially should transport corridors through key passages become blocked.
The timing of these cost rises has turned out to be especially difficult for British motorists approaching the Easter holidays. Families organising 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 even more severely, with a full tank now costing over £97, representing a £19 rise. The RAC’s Simon Williams described the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the combined effect on household budgets during what should 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 |
Crude oil fluctuations plus geopolitical factors
Global oil sectors remain highly responsive to Middle Eastern events, with crude prices mirroring investor concerns about possible supply disruptions. The attacks on Iran have increased doubt about regional stability, prompting traders to demand risk premiums on petroleum agreements. Whilst current prices remain below the extraordinary peaks witnessed following Russia’s military incursion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is concerning. Energy analysts suggest that any further escalation in hostilities could trigger additional price spikes, especially if major transport corridors or manufacturing plants experience disruption.
Public finances and impact on consumers
As petrol prices maintain their upward climb, 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 receives identical duty per litre no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own gains from elevated petrol costs.
The more extensive financial consequences transcend domestic spending limits to cover inflationary forces across all economic sectors. Elevated petrol prices flow through supply chains, affecting transport expenses for commodities and services. SMEs reliant on high-fuel activities experience significant difficulty, with haulage companies and courier services facing major expense increases. Consumer purchasing capacity diminishes as households allocate funds to fuel stations rather than alternative spending, possibly reducing economic growth. The RAC has counselled vehicle owners to organise refuelling efficiently and use price-comparison applications to find the most affordable nearby petrol stations, though such measures provide limited assistance against the overall cost escalation.
- Government receives fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise across all sectors and industries
- Consumer non-essential spending falls as household budgets focus on necessary fuel spending
What drivers ought to do now
With petrol prices displaying no immediate prospect of falling, motorists are being urged to implement a more planned strategy to refuelling. The RAC has stressed the significance of planning journeys carefully and using price-comparison tools to identify the cheapest forecourts in their local region. Whilst such approaches provide only marginal gains, they can accumulate meaningfully over time. Drivers ought to also think about whether non-essential journeys can be delayed or merged to minimise overall fuel expenditure. For those facing the Easter holidays, arranging travel plans ahead of time and topping up at budget-friendly forecourts before embarking on longer trips could aid in lessening the burden of higher petrol rates on holiday budgets.
- Use fuel price comparison apps to locate the most affordable nearby petrol stations before refuelling
- Merge trips where feasible and defer non-essential trips to lower fuel usage
- Fill up at more affordable stations before embarking on longer Easter holiday journeys
- Map your journey with care to maximise fuel efficiency and minimise overall expenditure
