Petrol prices have surpassed the 150p-per-litre threshold for the first time in almost two years, heightening the argument over whether petrol stations are capitalising on surging oil costs for profit. The typical cost for unleaded petrol exceeded the symbolic threshold on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The notable jumps, which have increased by around £10 to the price of topping up a typical family car in just a month, follow regional conflict in the Middle East that flared up 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 pointing to ministers for unjustly blaming at forecourt operators struggling with limited supply chains.
The 150p threshold broken
The milestone marks a important juncture for British motorists, who have observed fuel costs rise consistently since the Middle East tensions 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 a month earlier. The RAC has characterised the breach of 150p as an unwelcome milestone that will affect households already struggling with the rising cost of living. The increases are remarkably poorly timed, arriving just as families begin planning their Easter getaways and summer holidays, when demand for fuel traditionally peaks.
Whilst the present prices stay below the record highs recorded after Russia’s attack on Ukraine in 2022, the swift increase has reignited concerns about cost and availability. Diesel has performed considerably worse, climbing 35p per litre since the conflict began and now standing at over 177p. The RAC’s findings reveals that unleaded petrol has risen 17p per litre in the identical timeframe. With distribution networks already stretched and some petrol stations reporting temporary pump closures caused by unusually high demand, the combination of higher prices and possible supply problems threatens to worsen challenges for motorists across the country.
- Unleaded petrol now 17p costlier per litre than levels before the conflict
- 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 stay below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back against government accusations
The escalating row over fuel pricing has revealed a deepening split between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances they cannot influence. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers during the cost escalation. However, fuel retailers have reacted strongly, 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 current increase, leaving little room for profiteering even if operators were disposed to act. This mutual recrimination reflects the political importance surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The CMA has announced it will strengthen oversight of the petrol market, indicating that regulatory oversight will tighten. Yet retailers argue this increased scrutiny misses the fundamental point: they are reacting to real supply limitations and wholesale price fluctuations, not creating artificial scarcity for profit. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and value-added tax, possibly gaining more from the price spike than fuel retailers. This remark has introduced an awkward element to the debate, implying that government criticism may disregard the state’s own financial interests in elevated fuel costs.
Asda’s defence and procurement challenges
As the UK’s second largest fuel retailer, Asda has found itself at the centre of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is taking advantage of the situation, 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 unusually high 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 underscore a critical difference between profit-seeking and inventory control. When demand increases sharply, as took place after the regional tensions in the Middle East, retailers can find it difficult to keep up inventory levels in spite of their efforts. The Petrol Retailers Association supported this claim, admitting isolated availability issues at “a small number of forecourts for one retailer” but maintaining that overall UK supply is operating as usual. The association counselled drivers that there is no requirement to change their normal shopping behaviour, suggesting that accounts of supply issues have been exaggerated or isolated.
Middle Eastern instability driving bulk pricing
The notable surge in petrol and diesel prices has been firmly tied to escalating tensions in the Middle East, in the wake of combat actions between the US, Israel and Iran approximately a month ago. These regional shifts have created significant uncertainty in worldwide petroleum markets, pushing wholesale costs upwards and forcing retailers to pass increases through to consumers at fuel stations. The RAC has noted that standard petrol has risen by 17p per litre since the fighting commenced, whilst diesel has climbed even more steeply by 35p per litre. Analysts warn that further regional instability could force prices up still, notably if supply routes through essential bottlenecks become interrupted.
The scheduling of these cost rises has turned out to be particularly painful for British drivers heading into the Easter holidays. Families planning road trips face significantly higher petrol costs, with the cost of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 more than just a month earlier. Diesel cars are impacted to an even greater extent, with a full tank now costing over £97, constituting a £19 rise. The RAC’s Simon Williams described the breaching of the 150p-per-litre threshold as an “unwelcome milestone,” highlighting the cumulative impact 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 volatility and geopolitical factors
Global oil sectors remain highly responsive to Middle Eastern developments, with crude prices mirroring investor worries about possible supply disruptions. The attacks on Iran have heightened uncertainty about stability in the region, prompting traders to require premium rates on petroleum contracts. Whilst current prices stay 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 further escalation in hostilities could trigger additional price spikes, particularly if major shipping routes or manufacturing plants experience disruption.
Government revenue and consumer impact
As petrol prices maintain their upward climb, the government has been placed in an difficult situation. Whilst ministers have publicly criticised fuel retailers for potential profiteering, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel stays constant 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, suggesting that before accusing retailers of exploiting the crisis, the government should acknowledge its own windfall from higher fuel prices.
The wider economic implications transcend domestic spending limits to encompass inflation pressures across the entire economy. Elevated petrol prices feed through distribution networks, affecting transport expenses for goods and services. SMEs relying on fuel-intensive operations face particular hardship, with freight operators and courier services bearing substantial cost rises. Consumer spending power diminishes as families redirect money toward petrol pumps rather than other purchases, possibly reducing economic expansion. The RAC has advised vehicle owners to schedule fuel purchases carefully and utilise fuel-price apps to identify the lowest-priced local fuel retailers, though such measures offer only marginal relief against the broader price surge.
- Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures increase as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending falls as household budgets focus on necessary fuel spending
What motorists should do now
With petrol prices displaying no immediate prospect of falling, motorists are being advised to take a more calculated approach to refuelling. The RAC has highlighted the value of carefully planning journeys and using price-comparison tools to find the lowest-priced fuel retailers in their surrounding neighbourhood. Whilst such measures offer only modest savings, they can add up considerably over time. Drivers may also wish to evaluate whether discretionary journeys can be deferred or consolidated to minimise overall fuel expenditure. For those dealing with the Easter period, booking travel plans in advance and filling up at cheaper locations before embarking on longer trips could aid in lessening the burden of increased fuel costs on holiday budgets.
- Use petrol price finder tools to locate the most affordable nearby petrol stations before refuelling
- Merge trips where possible and postpone non-essential trips to lower fuel usage
- Fill up at cheaper locations before embarking on longer Easter holiday journeys
- Plan routes carefully to improve fuel economy and reduce total costs
