Petrol hits 150p milestone as retailers deny profiteering tactics

Petrol prices have exceeded the 150p-per-litre milestone for the first occasion in almost two years, intensifying the debate over whether fuel retailers are capitalising on soaring oil costs for financial gain. The average price for standard petrol rose past the symbolic threshold on Friday, whilst diesel jumped beyond 177p, according to figures from the RAC. The steep rises, which have added nearly £10 to the cost of filling a standard family vehicle in only a month, follow military tensions in the region that flared up a month ago when the US and Israel carried out operations on Iran. Asda’s executive chairman Allan Leighton has strongly denied accusations of profiteering, instead blaming ministers for wrongly accusing at forecourt operators struggling with restricted supply networks.

The 150p threshold broken

The milestone marks a important juncture for British motorists, who have watched fuel costs climb steadily since the regional tensions in the Middle East began. For a standard family vehicle requiring a 55-litre tank, drivers are now dealing with expenses exceeding £82 for a complete tank of unleaded fuel—nearly £10 more than just four weeks earlier. The RAC has termed the breach of 150p as an unwelcome milestone that will sting households already dealing with the cost-of-living crisis. The increases are remarkably poorly timed, arriving just as families start planning their Easter trips and summer breaks, when fuel demand conventionally surges.

Whilst the current prices remain below the peak levels recorded after Russia’s attack on Ukraine in 2022, the swift increase has revived concerns about cost and availability. Diesel has struggled even more, climbing 35p per litre since the conflict began and now standing at over 177p. The RAC’s findings reveals that petrol has increased 17p per litre in the identical timeframe. With supply chains already stretched and some petrol stations experiencing brief shutdowns due to unusually high demand, the mix of elevated costs and possible supply problems threatens to compound difficulties for motorists throughout the nation.

• Unleaded fuel now 17p costlier per litre than levels before the conflict
• Diesel costs have risen by 35p per litre since tensions began
• 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

Retailers push back against government accusations

The intensifying row over fuel pricing has exposed a deepening split between the government and forecourt operators, who argue they are being unjustly blamed for circumstances beyond their control. Ministers have adopted progressively confrontational language, warning retailers against attempting to “rip off” customers throughout the pricing spike. However, fuel retailers have hit back, characterising such rhetoric as “inflammatory” and self-defeating. The Petrol Retailers Association and large retailers like Asda have insisted that margins have actually compressed during the current increase, leaving minimal space for profiteering even if operators were willing to do so. This finger-pointing reflects the political sensitivity surrounding fuel costs, which significantly affect household budgets and public perception of government competence.

The Competition and Markets Authority has announced it will strengthen oversight of the petrol market, signalling that regulatory scrutiny will increase. Yet retailers contend this heightened oversight overlooks the core issue: they are reacting to genuine supply constraints and wholesale price movements, not engineering false shortages for profit. Asda’s Allan Leighton pointed out that the state benefits substantially from fuel duty and VAT, possibly gaining more from the price surge than retailers do. This remark has introduced an awkward element to the debate, suggesting that criticism from Westminster may overlook the government’s own financial interests in elevated fuel costs.

Asda’s defence and procurement difficulties

As the UK’s second largest fuel supplier, Asda has positioned 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 surged significantly, with demand substantially outstripping available supply. He acknowledged 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 next delivery, suggesting the disruptions are short-term rather than long-term.

Leighton’s statements highlight a critical separation between profit-seeking and inventory control. When demand spikes dramatically, as took place in the wake of the Middle East tensions, retailers can struggle to maintain standard stock levels despite making every effort. The Association of Petrol Retailers corroborated this claim, acknowledging sporadic supply problems at “a handful of forecourts for one retailer” but maintaining that overall UK supply is functioning smoothly. The association counselled drivers that there is no reason to change their normal buying patterns, implying that reports of shortages have been exaggerated or isolated.

Middle Eastern instability pushing wholesale prices

The sharp rise in petrol and diesel prices has been closely connected to mounting instability in the Middle East, subsequent to military strikes between the US, Israel and Iran roughly a month earlier. These political changes have created significant uncertainty in international energy markets, pushing wholesale costs upwards and compelling retailers to hand on rises to consumers at the pump. The RAC has noted that unleaded petrol has risen by 17p per litre since the conflict began, whilst diesel has risen even more sharply by 35p per litre. Analysts caution that further regional instability could drive prices upward still, particularly if distribution channels through critical chokepoints become interrupted.

The timing of these cost rises has proven particularly painful for British drivers heading into the Easter holidays. Families organising road trips face considerably elevated 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 affected to an even greater extent, with a complete fill-up now costing over £97, representing a £19 rise. The RAC’s Simon Williams characterised the breaching of the 150p-per-litre mark as an “unwelcome milestone,” highlighting the cumulative impact on household budgets during what should be a period of relaxation and journeys.

Crude oil fluctuations plus geopolitical factors

Global oil markets remain highly responsive to Middle Eastern events, with crude prices mirroring investor concerns about possible supply disruptions. The attacks on Iran have heightened uncertainty about regional stability, leading traders to require premium rates on petroleum contracts. Whilst current prices remain below the exceptional highs seen after Russia’s invasion of Ukraine—when wholesale costs reached record highs—the trajectory is worrying. Energy analysts indicate that any further escalation in hostilities could spark additional price spikes, especially if major transport corridors or manufacturing plants face disruption.

Government revenue and impact on consumers

As petrol prices keep rising steadily, the government has found itself in an awkward position. Whilst ministers have publicly criticised fuel retailers for potential profiteering, the Treasury has discreetly gained considerably 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 accusing retailers of exploiting the crisis, the government should acknowledge its own gains from elevated petrol costs.

The more extensive financial consequences transcend domestic spending limits to include inflation pressures across the entire economy. Increased fuel expenses feed through supply networks, impacting haulage expenses for commodities and services. Small businesses reliant on high-fuel activities experience significant difficulty, with freight operators and courier services facing major expense increases. Consumer purchasing capacity declines as families redirect money into fuel purchases rather than different expenditures, likely slowing economic expansion. The RAC has recommended vehicle owners to organise refuelling efficiently and use price-comparison applications to identify the cheapest local forecourts, though such measures offer only marginal relief against the wider price increase.

• Government receives set excise tax on every litre sold, irrespective of wholesale price fluctuations
• Supply chain cost pressures increase as shipping expenses rise across all sectors and industries
• Consumer discretionary spending declines as family finances prioritise essential fuel purchases

What drivers should do at present

With petrol prices showing no immediate signs of retreating, motorists are being encouraged to take a more calculated approach to refuelling. The RAC has highlighted the value of mapping out trips methodically and using price-comparison tools to locate the most affordable petrol stations in their surrounding neighbourhood. Whilst such approaches provide only marginal gains, they can add up considerably over time. Drivers may also wish to evaluate whether discretionary journeys can be delayed or merged to lower total fuel usage. For those facing the Easter holidays, booking travel plans in advance and filling up at cheaper locations before setting out on extended journeys could aid in lessening the burden of elevated pump prices on holiday spending.

• Use fuel price comparison apps to find the most affordable nearby petrol stations before refuelling
• Combine journeys where possible and defer non-essential trips to lower fuel usage
• Fill up at cheaper locations before embarking on longer Easter holiday journeys
• Map your journey with care to improve fuel economy and reduce total costs