Petrol prices have exceeded the 150p-per-litre threshold for the first occasion in almost two years, fuelling the debate over whether fuel retailers are taking advantage of rocketing oil costs for financial gain. The average price for standard petrol exceeded the important mark on Friday, whilst diesel jumped beyond 177p, based on figures from the RAC. The steep rises, which have pushed up by £10 to the price of topping up a standard family vehicle in only a month, follow geopolitical tensions in the Middle East that flared up a month ago when the US and Israel launched attacks on Iran. Asda’s chief executive Allan Leighton has categorically refuted accusations of profiteering, instead blaming ministers for unjustly blaming at petrol station owners struggling with restricted supply networks.
The 150p threshold broken
The milestone constitutes a important juncture for British motorists, who have seen 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 full tank of unleaded fuel—nearly £10 more than just a month earlier. The RAC has termed the breach of 150p as an unwanted milestone that will impact families already grappling with the cost-of-living crisis. The increases are particularly poorly timed, arriving just as families begin planning their Easter getaways and summer holidays, when demand for fuel traditionally peaks.
Whilst the current prices stay below the record highs recorded following Russia’s invasion of Ukraine in 2022, the swift increase has revived concerns about cost and availability. Diesel has fared even worse, rising 35p per litre since the conflict began and now standing at over 177p. The RAC’s analysis shows that petrol has increased 17p per litre in the same period. With distribution networks already strained and some forecourts reporting temporary pump closures due to unusually high demand, the mix of elevated costs and possible supply problems risks compound difficulties for motorists throughout the nation.
- Unleaded fuel now 17p costlier per litre than levels before the conflict
- Diesel prices have increased by 35p per litre since the tensions started
- Filling up a family car costs approximately £9.50 more than one month ago
- Prices remain below Ukraine invasion peaks but increasing at an alarming rate
Retail sector pushes back against official allegations
The growing row over fuel pricing has revealed a widening divide between the government and forecourt operators, who argue they are being unjustly blamed for circumstances they cannot influence. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers throughout the pricing spike. However, fuel retailers have responded sharply, characterising such rhetoric as “inflammatory” and unhelpful. The Petrol Retailers Association and leading operators like Asda have insisted that margins have truly narrowed during the current increase, leaving scant scope for profiteering even if operators were disposed to act. This blame-shifting reflects the public concern surrounding fuel costs, which directly impact household budgets and public perception of government competence.
The Competition and Markets Authority has announced it will intensify oversight of the fuel sector, signalling that regulatory oversight will tighten. Yet retailers contend this heightened oversight overlooks the fundamental point: they are responding to genuine supply constraints and wholesale price movements, not engineering artificial scarcity for profit. Asda’s Allan Leighton pointed out that the government itself profits significantly from fuel duty and VAT, potentially earning more from the price surge than fuel retailers. This observation has introduced an awkward element to the debate, implying that government criticism may disregard the state’s own economic stakes in elevated fuel costs.
Asda’s defence and procurement difficulties
As the UK’s second largest fuel retailer, 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, emphasising 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 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 short-term rather than long-term.
Leighton’s observations emphasise a critical difference between profit-seeking and inventory control. When demand surges unexpectedly, as has happened in the wake of the Middle East tensions, retailers may find it challenging to keep up inventory levels in spite of their efforts. The Petrol Retailers Association corroborated this narrative, acknowledging sporadic supply problems at “a small number of forecourts for one retailer” but maintaining that overall UK supply is functioning smoothly. The association recommended drivers that there is no reason to change their normal shopping behaviour, suggesting that reports of shortages are overstated or confined to specific areas.
Middle East conflicts increasing bulk pricing
The notable surge in petrol and diesel prices has been closely connected to rising conflict in the Middle East, subsequent to armed operations between the US, Israel and Iran approximately a month ago. These regional shifts have created significant uncertainty in global oil markets, driving wholesale prices higher and obliging retailers to hand on rises to consumers at fuel stations. The RAC has noted that regular fuel has risen by 17p per litre since the conflict began, whilst diesel has risen even more sharply by 35p per litre. Analysts warn that additional geopolitical disruption could drive prices upward still, especially should distribution channels through essential bottlenecks become disrupted.
The scheduling of these cost rises has proven especially difficult for British motorists heading into the Easter break. Families planning road trips encounter significantly higher fuel bills, with the cost of topping up a standard family vehicle now surpassing £82 for standard petrol—roughly £9.50 higher than just a month earlier. Diesel cars are impacted even more severely, with a full tank now costing over £97, constituting a £19 rise. The RAC’s Simon Williams described the crossing of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the combined effect on household budgets during what should be a period 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 political tensions
Global oil sectors remain highly responsive to Middle Eastern developments, with crude prices reflecting investor worries about possible disruptions to supply. The attacks on Iran have heightened uncertainty about stability in the region, leading traders to require premium rates on petroleum contracts. Whilst current prices stay below the exceptional highs seen after Russia’s military incursion of Ukraine—when wholesale costs reached record highs—the trajectory is worrying. Energy analysts suggest that any additional escalation in conflict could spark additional price spikes, especially if major transport corridors or manufacturing plants experience disruption.
Government revenue and consumer impact
As petrol prices continue their upward trajectory, the government has been placed in an difficult situation. Whilst government officials have openly condemned fuel retailers for possible price gouging, the Treasury has discreetly gained considerably from the surge in pump prices. Excise duty on fuel stays constant regardless of the wholesale cost, meaning the government receives identical duty per litre no matter if petrol costs 120p or 150p. Asda’s executive chairman Allan Leighton pointedly noted this contradiction, proposing that before blaming retailers for taking advantage of the crisis, the government ought to recognise its own gains from elevated petrol costs.
The wider economic effects extend beyond personal family finances to cover inflationary forces across the entire economy. Elevated petrol prices flow through distribution networks, affecting transport expenses for commodities and services. Small businesses relying on fuel-heavy processes encounter considerable challenges, with transport firms and logistics providers facing major expense increases. Household purchasing power falls as people channel spending to fuel stations rather than alternative spending, possibly reducing GDP growth. The RAC has advised vehicle owners to schedule fuel purchases carefully and employ price-checking tools to find the lowest-priced local fuel retailers, though these approaches provide limited assistance against the broader price surge.
- Government collects set excise tax on every litre sold, regardless of wholesale price fluctuations
- Supply chain inflation pressures increase as shipping expenses rise throughout various sectors and industries
- Consumer discretionary spending declines as family finances prioritise essential fuel purchases
What motorists should do now
With petrol prices demonstrating no near-term likelihood of declining, motorists are being advised to adopt a more strategic approach to refuelling. The RAC has stressed the significance of carefully planning journeys and leveraging price-comparison platforms to locate the most affordable petrol stations in their local region. Whilst such measures offer only modest savings, they can add up considerably over time. Drivers should also consider whether discretionary journeys can be postponed or combined to lower total fuel usage. For those preparing for the Easter break, arranging travel plans ahead of time and refuelling at lower-cost stations before setting out on extended journeys could assist in reducing the effect of higher petrol rates on holiday budgets.
- Use fuel price comparison apps to locate the cheapest local forecourts before refuelling
- Combine journeys where feasible and postpone unnecessary journeys to lower fuel usage
- Fill up at cheaper locations before setting out on longer Easter holiday journeys
- Map your journey with care to improve fuel economy and reduce total costs
