Petrol prices have breached the 150p-per-litre milestone for the first time in almost two years, intensifying the debate over whether fuel retailers are capitalising on surging oil costs for profit. The typical cost for unleaded petrol climbed above the symbolic threshold on Friday, whilst diesel surged past 177p, based on figures from the RAC. The steep rises, which have pushed up by £10 to the price of topping up a typical family car in only a month, follow geopolitical tensions in the region that broke out a month ago when the US and Israel conducted strikes on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of profiteering, instead blaming ministers for unjustly blaming at forecourt operators battling restricted supply networks.
The 150p barrier breached
The milestone constitutes a significant moment for British motorists, who have seen fuel costs rise consistently since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre fuel tank, drivers are now dealing with expenses 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 unwelcome milestone that will affect households already grappling with the rising cost of living. The increases are particularly poorly timed, arriving just as families start planning their Easter getaways and summer holidays, when fuel demand conventionally surges.
Whilst the current prices stay below the record highs recorded after Russia’s invasion of Ukraine in 2022, the swift increase has reignited concerns about cost and availability. Diesel has performed considerably worse, rising 35p per litre since the conflict began 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 strained and some petrol stations experiencing brief shutdowns due to exceptional demand, the mix of elevated costs and potential availability issues risks worsen challenges for drivers across the country.
- Unleaded fuel now 17p more expensive 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 a month earlier
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retailers push back on government accusations
The intensifying row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances beyond their control. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers amid the pricing spike. However, fuel retailers have reacted strongly, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and leading operators like Asda have insisted that margins have genuinely tightened during the recent spike, leaving minimal space for profiteering even if operators were willing to do so. This mutual recrimination reflects the public concern surrounding fuel costs, which materially influence household budgets and public perception of government competence.
The CMA has stated it will intensify monitoring of the fuel sector, signalling that regulatory scrutiny will increase. Yet fuel retailers contend this heightened oversight overlooks the core issue: they are reacting to real supply limitations and wholesale price movements, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton pointed out that the government itself profits significantly from fuel duty and value-added tax, possibly gaining more from the price surge than fuel retailers. This observation has added an awkward element 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 supplier, Asda has found itself at the heart of the pricing row. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, stressing instead that fuel volumes have surged significantly, with demand far exceeding available supply. He conceded that a small number of pumps have temporarily gone out of service due to exceptional 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 subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks emphasise a key distinction between profiteering and supply management. When demand spikes dramatically, as has occurred in the wake of the Middle East tensions, retailers can struggle to maintain normal stock levels in spite of their efforts. The Petrol Retailers Association backed up this claim, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but maintaining that the UK’s overall supply is operating as usual. The association advised drivers that there is no requirement to alter their usual shopping behaviour, implying that claims of stock problems are overstated or isolated.
Middle Eastern instability pushing bulk pricing
The notable surge in petrol and diesel prices has been closely connected to rising conflict in the Middle East, subsequent to combat actions between the US, Israel and Iran about a month prior. These regional shifts have created significant uncertainty in worldwide petroleum markets, pushing wholesale costs upwards and compelling retailers to hand on rises to consumers on the forecourt. The RAC has documented that regular fuel has risen by 17p per litre since the conflict began, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that further regional instability could drive prices upward still, notably if supply routes through essential bottlenecks become blocked.
The timing of these price increases has turned out to be particularly painful for British drivers approaching the Easter break. Families planning driving holidays encounter significantly higher petrol costs, with the expense of filling a typical family car now surpassing £82 for standard petrol—roughly £9.50 higher than just a month earlier. Diesel-powered vehicles are impacted even more severely, with a complete fill-up now costing over £97, representing a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” underlining the cumulative impact on household budgets during what should 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 volatility and political tensions
Global oil markets remain highly responsive to Middle Eastern events, with crude prices reflecting investor worries about possible supply disruptions. The attacks on Iran have increased uncertainty about regional stability, prompting traders to require risk premiums on petroleum agreements. Whilst current prices stay below the extraordinary peaks seen after Russia’s invasion of Ukraine—when wholesale costs hit record highs—the trajectory is concerning. Energy analysts suggest that any additional escalation in conflict could trigger further price increases, especially if major shipping routes or manufacturing plants experience disruption.
Government revenue 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 remains fixed regardless of the wholesale cost, meaning the government receives identical duty per litre regardless of whether petrol costs 120p or 150p. Asda’s chief executive Allan Leighton pointedly noted this contradiction, proposing that before accusing retailers of exploiting the crisis, the government should acknowledge its own windfall from higher fuel prices.
The broader financial consequences transcend personal family finances to encompass price increases across the entire economy. Higher fuel costs feed through supply chains, impacting haulage expenses for commodities and services. SMEs reliant on high-fuel activities face particular hardship, with freight operators and delivery services absorbing significant cost increases. Consumer purchasing capacity declines as households allocate funds to fuel stations rather than different expenditures, likely slowing economic expansion. The RAC has recommended vehicle owners to organise refuelling efficiently and utilise fuel-price apps to find the lowest-priced local fuel retailers, though these approaches provide limited assistance against the broader price surge.
- Government receives fixed excise duty on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation 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 drivers ought to do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being advised to implement a more planned strategy to refuelling. The RAC has emphasised the importance of planning journeys carefully and utilising price-comparison applications to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such steps deliver only limited savings, they can accumulate meaningfully over time. Drivers ought to also think about whether unnecessary trips can be delayed or merged to minimise overall fuel expenditure. For those facing the Easter holidays, arranging travel plans ahead of time and refuelling at lower-cost stations before embarking on longer trips could aid in lessening the burden of increased fuel costs on holiday budgets.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before refuelling
- Combine journeys where feasible and postpone non-essential trips to lower fuel usage
- Fill up at more affordable stations before setting out on extended Easter break trips
- Map your journey with care to maximise fuel efficiency and reduce total costs
