Petrol prices have exceeded the 150p-per-litre milestone for the first time in almost two years, fuelling the discussion over whether petrol stations are taking advantage of surging oil costs for financial gain. The typical cost for standard petrol climbed above the important mark on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The notable jumps, which have added nearly £10 to the price of topping up a standard family vehicle in only a month, follow regional conflict in the region that broke out a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of excessive profit-taking, instead blaming ministers for unfairly “pointing the finger” at petrol station owners battling limited supply chains.
The 150p level exceeded
The milestone marks a significant moment for British motorists, who have watched fuel costs climb steadily since the regional tensions in the Middle East began. For a typical family car requiring a 55-litre tank, drivers are now facing bills exceeding £82 for a complete tank of unleaded petrol—nearly £10 more than just a month earlier. The RAC has termed 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 commence planning their Easter getaways and summer breaks, when fuel demand traditionally peaks.
Whilst the present prices remain below the peak levels witnessed following Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited concerns about cost and availability. Diesel has fared even worse, rising 35p per litre following the conflict’s start and now standing at over 177p. The RAC’s analysis shows that unleaded petrol has risen 17p per litre in the identical timeframe. With supply chains already stretched and some petrol stations experiencing temporary pump closures due to unusually high demand, the combination of higher prices and possible supply problems threatens to worsen challenges for drivers across the country.
- Unleaded fuel now 17p more expensive per litre than pre-conflict levels
- Diesel costs have risen by 35p per litre since tensions began
- Filling up a family car costs roughly £9.50 more than one month ago
- Prices stay below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back against government accusations
The intensifying row over fuel pricing has highlighted 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 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 truly narrowed during the recent spike, leaving little room for profiteering even if operators were willing to do so. This mutual recrimination reflects the public concern surrounding fuel costs, which directly impact household budgets and popular understanding of government competence.
The CMA has announced it will intensify oversight of the fuel sector, indicating that regulatory oversight will increase. Yet retailers argue this increased scrutiny misses the fundamental point: they are reacting to real supply limitations and wholesale price movements, not engineering artificial scarcity for profit. Asda’s Allan Leighton highlighted that the state profits significantly from fuel duty and VAT, potentially earning more from the price surge than retailers do. This observation has added an awkward element to the debate, implying that criticism from Westminster may overlook the state’s own financial interests in elevated fuel costs.
Asda’s defense and logistics difficulties
As the UK’s second largest fuel supplier, Asda has found itself at the heart of the profiteering controversy. Executive chairman Leighton has firmly denied suggestions that the chain is exploiting the crisis, stressing instead that fuel volumes have increased substantially, with demand substantially outstripping available supply. He conceded that a small number of pumps have temporarily gone out of service due to exceptional customer demand, but insisted that Asda has not closed any forecourts entirely. The company expects affected pumps to return to operation following its subsequent delivery, suggesting the disruptions are temporary rather than structural.
Leighton’s observations emphasise a important difference between profit-seeking and inventory control. When demand increases sharply, as took place in the wake of the Middle East tensions, retailers may find it challenging to maintain normal stock levels in spite of their efforts. The Association of Petrol Retailers backed up this account, recognising isolated availability issues at “a small number of forecourts for one retailer” but asserting that overall UK supply is functioning smoothly. The association advised drivers that there is no reason to modify their regular buying patterns, implying that reports of shortages have been inflated or localised.
Middle East conflicts increasing wholesale costs
The sharp rise in petrol and diesel prices has been closely connected to rising conflict in the Middle East, in the wake of armed operations between the US, Israel and Iran roughly a month earlier. These regional shifts have created significant uncertainty in international energy markets, driving wholesale prices higher and obliging retailers to pass increases through to consumers at the pump. The RAC has documented that standard petrol has increased by 17p per litre since the fighting commenced, whilst diesel has increased even more dramatically by 35p per litre. Analysts caution that additional geopolitical disruption could drive prices upward still, particularly if transport corridors through key passages become blocked.
The timing of these cost rises has proven particularly painful for British motorists approaching the Easter holidays. Families planning road trips encounter considerably elevated petrol costs, with the cost of filling a typical family car now exceeding £82 for standard petrol—roughly £9.50 higher than just a month earlier. Diesel cars are impacted to an even greater extent, with a complete fill-up now running to over £97, constituting a £19 increase. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre mark as an “unwelcome milestone,” underlining the combined effect on family finances 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 geopolitical factors
Global oil sectors stay highly responsive to Middle Eastern developments, with crude prices mirroring investor concerns about possible disruptions to supply. The attacks on Iran have increased doubt about regional stability, prompting traders to demand risk premiums on petroleum agreements. Whilst current prices stay below the extraordinary peaks seen after Russia’s military incursion of Ukraine—when wholesale costs hit unprecedented levels—the trajectory is concerning. Energy analysts suggest that any additional escalation in hostilities could trigger additional price spikes, especially if major shipping routes or production facilities experience disruption.
Public finances and consumer impact
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 quietly benefited substantially 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 regardless of whether petrol costs 120p or 150p. Asda’s chief executive 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 more extensive economic effects go further than individual household budgets to encompass price increases across all economic sectors. Higher fuel costs feed through supply chains, impacting transport expenses for goods and services. Smaller enterprises dependent on high-fuel activities face particular hardship, with haulage companies and logistics providers facing major expense increases. Household purchasing power declines as people channel spending into fuel purchases rather than alternative spending, likely slowing economic expansion. The RAC has counselled vehicle owners to schedule fuel purchases carefully and utilise fuel-price apps to identify the most affordable nearby petrol stations, though these steps deliver modest help against the broader price surge.
- Government collects set excise tax on every litre sold, irrespective of wholesale price fluctuations
- Supply chain cost pressures intensify as transport costs rise across all sectors and industries
- Consumer non-essential spending declines as household budgets focus on essential fuel purchases
What drivers ought to do at present
With petrol prices showing no immediate signs of retreating, motorists are being advised to implement a more planned strategy to refuelling. The RAC has highlighted the value of mapping out trips methodically and leveraging price-comparison platforms to identify the cheapest forecourts in their surrounding neighbourhood. Whilst such steps deliver only limited savings, they can accumulate meaningfully over time. Drivers may also wish to evaluate whether non-essential journeys can be delayed or merged to minimise overall fuel expenditure. For those facing the Easter holidays, reserving travel arrangements early and filling up at cheaper locations before setting out on extended journeys could help mitigate the impact of increased fuel costs on vacation finances.
- Use fuel price comparison apps to find the most affordable nearby petrol stations before refuelling
- Combine journeys where possible and postpone non-essential trips to reduce consumption
- Fill up at cheaper locations before embarking on extended Easter break trips
- Plan routes carefully to maximise fuel efficiency and reduce total costs
