Petrol prices have surpassed the 150p-per-litre threshold for the first occasion in almost two years, intensifying the debate over whether petrol stations are taking advantage of soaring oil costs for financial gain. The average price for standard petrol climbed above the symbolic threshold on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The sharp increases, which have added nearly £10 to the cost of filling a standard family vehicle in only a month, follow military tensions 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 firmly rejected accusations of excessive profit-taking, instead blaming ministers for unfairly “pointing the finger” at forecourt operators battling limited supply chains.
The 150p ceiling surpassed
The milestone marks a significant moment for British motorists, who have seen fuel costs increase progressively since the Middle East tensions began. For a typical family car requiring a 55-litre fuel tank, drivers are now encountering costs exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has described the breach of 150p as an unwanted milestone that will affect households already dealing with the cost-of-living crisis. The increases are especially badly timed, arriving just as families begin planning their Easter getaways and summer breaks, when fuel demand traditionally peaks.
Whilst the current prices stay below the peak levels recorded following Russia’s invasion of Ukraine in 2022, the swift increase has revived worries regarding affordability and accessibility. Diesel has struggled even more, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s findings reveals that petrol has risen 17p per litre in the same period. With supply chains already strained and some forecourts experiencing brief shutdowns due to exceptional demand, the combination of elevated costs and potential availability issues threatens to compound difficulties for drivers across the country.
- Unleaded fuel now 17p more expensive 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 a month earlier
- Prices remain below Ukraine invasion peaks but rising at concerning rate
Retailers challenge against official allegations
The growing row over fuel pricing has exposed a growing rift 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 cost escalation. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the current increase, leaving minimal space for profiteering even if operators were inclined to do so. This finger-pointing reflects the public concern surrounding fuel costs, which materially influence household budgets and popular understanding of government competence.
The Competition and Markets Authority has announced it will intensify oversight of the petrol market, indicating that regulatory scrutiny will increase. Yet fuel retailers argue this increased scrutiny misses the fundamental point: they are reacting to real supply limitations and wholesale price fluctuations, not engineering artificial scarcity for financial gain. Asda’s Allan Leighton highlighted that the government itself profits significantly from fuel duty and value-added tax, potentially earning more from the price spike than fuel retailers. This observation has introduced an awkward element to the debate, suggesting that government criticism may overlook the state’s own financial interests 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 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 temporarily gone out of service 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 subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s remarks highlight a key separation between profit-seeking and supply management. When demand increases sharply, as has occurred in the wake of the regional tensions in the Middle East, retailers can struggle to maintain standard stock levels despite their best efforts. The Petrol Retailers Association corroborated this claim, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but maintaining that overall UK supply is operating as usual. The body recommended drivers that there is no need to alter their usual shopping behaviour, indicating that claims of stock problems are overstated or confined to specific areas.
Middle Eastern instability pushing wholesale prices
The sharp rise 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 about a month prior. These geopolitical developments have created significant uncertainty in international energy markets, pushing wholesale costs upwards and obliging retailers to hand on rises to consumers at the pump. The RAC has noted that unleaded petrol has climbed by 17p per litre since hostilities started, whilst diesel has climbed even more steeply by 35p per litre. Analysts caution that additional geopolitical disruption could push prices higher still, especially should transport corridors through essential bottlenecks become interrupted.
The timing of these cost rises has turned out to be especially difficult for British drivers heading into the Easter holidays. Families organising driving holidays face significantly higher fuel bills, with the cost of topping up a standard family vehicle now surpassing £82 for unleaded petrol—roughly £9.50 more than just a month earlier. Diesel cars are affected even more severely, with a full tank now running to 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 ought to 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 volatility and geopolitical factors
Global oil sectors remain highly sensitive to Middle Eastern developments, with crude prices reflecting investor worries about possible supply disruptions. The attacks on Iran have heightened doubt about regional stability, prompting traders to demand premium rates on petroleum contracts. Whilst current prices stay below the exceptional highs witnessed following Russia’s military incursion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is worrying. Energy analysts indicate that any additional escalation in conflict could trigger further price increases, especially if major transport corridors or manufacturing plants face disruption.
Government revenue and consumer impact
As petrol prices keep rising steadily, the government has been placed in an awkward position. Whilst government officials have openly condemned fuel retailers for potential profiteering, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel remains fixed regardless of the market price, meaning the government receives identical duty per litre regardless of whether petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton deliberately highlighted this contradiction, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own windfall from higher fuel prices.
The broader financial consequences go further than individual household budgets to encompass inflationary forces across the entire economy. Increased fuel expenses flow through distribution networks, affecting haulage expenses for goods and services. SMEs relying on fuel-intensive operations encounter considerable challenges, with haulage companies and courier services facing major expense increases. Consumer spending power falls as families redirect money into fuel purchases rather than alternative spending, possibly reducing GDP growth. The RAC has advised vehicle owners to plan refuelling strategically and employ price-checking tools to locate the most affordable nearby petrol stations, though such measures provide limited assistance against the wider price increase.
- Government receives 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 non-essential spending falls as family finances focus on necessary fuel spending
What drivers should 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 emphasised the importance of carefully planning journeys and leveraging price-comparison platforms to identify the cheapest forecourts in their local region. Whilst such approaches provide only marginal gains, they can accumulate meaningfully over time. Drivers should also consider whether discretionary journeys can be deferred or consolidated to lower total fuel usage. For those dealing with the Easter period, reserving travel arrangements early and filling up at cheaper locations before undertaking longer drives could aid in lessening the burden of increased fuel costs on holiday spending.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before filling up
- Merge trips where possible and postpone unnecessary journeys to lower fuel usage
- Fill up at cheaper locations before setting out on extended Easter break trips
- Plan routes carefully to improve fuel economy and minimise overall expenditure
