Petrol prices have exceeded the 150p-per-litre threshold for the first occasion in nearly two years, heightening the discussion over whether fuel retailers are capitalising on rocketing oil costs for financial gain. The average price for unleaded petrol climbed above the symbolic threshold 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 region that broke out a month ago when the US and Israel carried out operations on Iran. Asda’s chief executive Allan Leighton has strongly denied accusations of excessive profit-taking, instead blaming ministers for unjustly blaming at petrol station owners struggling with constrained supply chains.
The 150p threshold broken
The milestone constitutes a significant moment for British motorists, who have seen fuel costs rise consistently since the Middle East tensions began. For a typical family car requiring a 55-litre tank, drivers are now facing bills exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has described the breach of 150p as an unwanted milestone that will sting 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 fuel demand traditionally peaks.
Whilst the current prices stay below the record highs recorded following Russia’s invasion of Ukraine in 2022, the rapid acceleration has reignited concerns about affordability and accessibility. Diesel has fared even worse, rising 35p per litre since the conflict began and now reaching over 177p. The RAC’s analysis reveals that unleaded petrol has risen 17p per litre in the same period. With distribution networks already strained and some petrol stations reporting brief shutdowns caused by unusually high demand, the mix of elevated costs and possible supply problems threatens to compound difficulties for drivers throughout the nation.
- Unleaded fuel now 17p costlier 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 a month earlier
- Prices remain 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 widening divide between the government and forecourt operators, who argue they are being unfairly scapegoated for circumstances outside their remit. Ministers have adopted increasingly combative language, warning retailers against attempting to “rip off” customers throughout the cost escalation. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and large retailers like Asda have insisted that margins have actually compressed during the current increase, leaving little room for profiteering even if operators were willing to do so. This blame-shifting reflects the political importance surrounding fuel costs, which directly impact household budgets and public perception of government competence.
The CMA has stated it will intensify monitoring of the fuel sector, indicating that regulatory oversight will increase. Yet retailers argue this heightened oversight misses the fundamental point: they are reacting to genuine supply constraints and wholesale price fluctuations, not engineering false shortages for financial gain. Asda’s Allan Leighton pointed out that the government itself benefits substantially 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, implying that government criticism may overlook the state’s own economic stakes in higher fuel prices.
Asda’s defense and logistics challenges
As the UK’s second-biggest fuel retailer, Asda has found itself at the centre of the pricing row. 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 briefly stopped operating due to unusually high customer demand, but maintained 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 remarks emphasise a critical distinction between profit-seeking and supply management. When demand increases sharply, as has happened after the Middle East tensions, retailers can struggle to keep up stock levels despite making every effort. The Petrol Retailers Association corroborated this account, acknowledging isolated availability issues at “a handful of forecourts for one retailer” but insisting that overall UK supply is operating as usual. The association recommended drivers that there is no reason to change their normal purchasing habits, suggesting that claims of stock problems have been exaggerated or localised.
Middle East tensions driving wholesale prices
The notable surge in petrol and diesel prices has been closely connected to escalating tensions in the Middle East, subsequent to military strikes between the US, Israel and Iran approximately a month ago. These regional shifts have produced substantial volatility in worldwide petroleum markets, driving wholesale prices higher and compelling retailers to pass increases through to consumers on the forecourt. The RAC has noted that regular fuel has increased by 17p per litre since the fighting commenced, whilst diesel has climbed even more steeply by 35p per litre. Analysts alert that additional geopolitical disruption could push prices higher still, especially should distribution channels through essential bottlenecks become interrupted.
The timing of these price increases has proven especially difficult for British drivers heading into the Easter holidays. Families planning driving holidays encounter significantly higher petrol costs, with the expense of topping up a standard family vehicle now exceeding £82 for unleaded petrol—roughly £9.50 more than just a month earlier. Diesel-powered vehicles are affected even more severely, with a full tank now costing over £97, representing a £19 rise. 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 |
Oil market fluctuations plus geopolitical factors
Global oil sectors remain highly responsive to Middle Eastern events, with crude prices mirroring investor concerns about potential supply disruptions. The attacks on Iran have increased doubt about stability in the region, prompting traders to require risk premiums on petroleum contracts. Whilst current prices stay below the exceptional highs witnessed following Russia’s invasion of Ukraine—when wholesale costs reached unprecedented levels—the trajectory is worrying. Energy analysts suggest that any additional escalation in hostilities could spark further price increases, especially if major transport corridors or manufacturing plants experience disruption.
Public finances and consumer impact
As petrol prices continue their upward trajectory, the government has found itself in an difficult situation. Whilst ministers have publicly criticised fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel remains fixed regardless of the wholesale cost, meaning the government collects the same tax 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 ought to recognise its own windfall from higher fuel prices.
The broader financial consequences extend beyond individual household budgets to encompass price increases across the entire economy. Increased fuel expenses pass through distribution networks, influencing haulage expenses for commodities and services. SMEs reliant on high-fuel activities experience significant difficulty, with freight operators and delivery services bearing substantial cost rises. Consumer purchasing capacity diminishes as families redirect money into fuel purchases rather than alternative spending, likely slowing GDP growth. The RAC has counselled drivers to schedule fuel purchases carefully and use price-comparison applications to identify the most affordable nearby petrol stations, though these approaches 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 shipping expenses rise across all sectors and industries
- Consumer non-essential spending falls as family finances focus on necessary fuel spending
What drivers ought to do at present
With petrol prices demonstrating no near-term likelihood of declining, motorists are being advised to take a more calculated approach to refuelling. The RAC has stressed the significance of mapping out trips methodically and leveraging price-comparison platforms to find the lowest-priced fuel retailers in their surrounding neighbourhood. Whilst such measures offer only modest savings, they can accumulate meaningfully over time. Drivers ought to also think about whether discretionary journeys can be deferred or consolidated to minimise overall fuel expenditure. For those preparing for the Easter break, arranging travel plans ahead of time and topping up at budget-friendly forecourts before undertaking longer drives could aid in lessening the burden of elevated pump prices on vacation finances.
- Use fuel price comparison apps to locate the cheapest local forecourts before filling up
- Combine journeys where feasible and defer 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 minimise overall expenditure
