Petrol at 150p a Litre: What's Really Going On — and How Drivers Can Fight Back

Easter is supposed to be a time for road trips, family visits, and a well-earned break. But as millions of drivers pulled into forecourts ahead of the bank holiday weekend, they were met with a distinctly unwelcome sight: petrol prices nudging — and in many cases topping — 150p per litre. For a typical family car with a 55-litre tank, that's a fill-up costing over £82. For van drivers, tradespeople, and anyone who depends on their vehicle for work, the numbers are even grimmer.

Asda's chief executive stepped into the spotlight to push back against accusations that fuel retailers are using global uncertainty as cover to pad their margins. But is that denial credible? And more importantly, what can ordinary drivers actually do about it?

What Happened: Petrol Breaks the 150p Barrier

According to reporting by BBC News, petrol prices crossed the 150p-per-litre threshold in the run-up to Easter 2025 — a psychologically and practically significant milestone that hadn't been breached for some time. The timing was particularly painful: Easter is one of the busiest periods for leisure driving in the UK, meaning demand at the pump was already elevated.

Asda's boss moved quickly to distance the supermarket chain — historically one of the UK's cheapest fuel retailers — from profiteering allegations. The argument put forward was that the price rises are being driven by external factors: volatile crude oil markets, geopolitical instability, and the weakness of the pound against the dollar (crude oil is priced in US dollars globally, meaning sterling depreciation directly inflates UK fuel costs).

These are legitimate factors. But critics, including consumer groups and some MPs, have argued that fuel retailers are not always passing savings on quickly enough when wholesale prices fall — a phenomenon sometimes called "rockets and feathers", where prices shoot up fast but drift down slowly.

Why It Matters: The Bigger Picture Behind the Price Spike

To understand why 150p feels so significant, it helps to know where we've been. UK petrol prices hit a record high of around 191p per litre in July 2022, driven by the post-pandemic demand surge and Russia's invasion of Ukraine. Prices then fell back considerably through 2023 and into 2024, with the RAC and AA reporting averages dipping below 140p at various points.

So why the renewed upward pressure now?

Several forces are converging:

• Global oil market volatility — OPEC+ production decisions continue to influence crude prices significantly, and any hint of supply cuts sends prices upward
• Refinery margins — the cost of refining crude into usable fuel has remained elevated post-pandemic as infrastructure investment lagged
• Sterling weakness — when the pound weakens against the dollar, every barrel of imported crude costs more in British terms
• Seasonal demand — Easter, summer holidays, and bank holiday weekends all push up forecourt demand, and retailers know it
• Duty and VAT — a point often overlooked in the headlines: fuel duty in the UK currently sits at 52.95p per litre, frozen since March 2022 when the government cut it by 5p. VAT at 20% is then applied on top of the total pump price, meaning the government takes a substantial cut of every litre sold

That last point is crucial. Even at 150p per litre, roughly 70–75p of what you pay goes directly to the Treasury in duty and VAT. The fuel duty freeze has been repeatedly extended, but there has been persistent speculation about whether it can continue indefinitely given fiscal pressures.

The Legal Angle: Are Drivers Actually Protected?

This is where things get interesting — and where many drivers don't realise they have more standing than they think.

The CMA's Role

The Competition and Markets Authority (CMA) has been actively scrutinising the UK fuel retail market. Following its 2023 investigation, the CMA found evidence of weakened competition in the market and recommended the creation of a new statutory monitoring function to track wholesale-to-pump price relationships in real time. The government accepted this recommendation, and the Fuel Finder scheme — requiring large fuel retailers to publish live pump prices — was introduced under powers within the Energy Act 2023.

This is significant. For the first time, drivers have a legal right to access real-time, comparable fuel price data from major retailers. The scheme applies to retailers operating 5 or more forecourts, covering the vast majority of fuel sold in the UK.

The Fuel Duty Framework

Fuel duty is governed by the Hydrocarbon Oil Duties Act 1979, as amended. The Chancellor sets the rate in each Budget, and retailers are legally required to collect it. There is no mechanism for retailers to absorb or reduce duty — it is a fixed cost passed directly to consumers. This matters because it means a significant portion of any price rise is effectively beyond any retailer's control or discretion.

Consumer Rights Considerations

Under the Consumer Rights Act 2015, goods and services must be provided at a fair price where no price has been agreed in advance. However, because fuel prices are displayed at the forecourt before purchase, the price you see is the price you contractually agree to pay. There is no legal right to challenge a forecourt price after the fact simply because it seems high.

What is actionable is misleading pricing — for instance, advertising a headline price that doesn't reflect the actual pump price, or failing to update displayed prices promptly. The Consumer Protection from Unfair Trading Regulations 2008 prohibit misleading commercial practices, and the CMA has powers to investigate and sanction retailers who engage in them.

What Drivers Should Know: Practical Ways to Spend Less at the Pump

The law may not give you a direct remedy against high fuel prices, but smart driving and shopping habits absolutely can.

Use the Fuel Finder data: The government-mandated price transparency scheme means apps like Confused.com's fuel price checker, PetrolPrices.com, and Waze now pull live data from major retailers. Before you fill up, spend 60 seconds checking whether a forecourt half a mile away is 5p cheaper. On a 55-litre fill, that's a £2.75 saving — and it adds up.

Time your fill-ups strategically: Prices tend to be slightly lower mid-week and mid-month. Bank holiday weekends — precisely when most drivers are filling up — are typically the worst time to buy fuel. If you can, fill your tank the week before a long weekend.

Supermarket forecourts remain your best bet: Despite the profiteering allegations, supermarket forecourts — Asda, Tesco, Sainsbury's, and Morrisons — consistently undercut motorway services and branded forecourts by a meaningful margin. Motorway fuel can be 15–20p per litre more expensive than a nearby supermarket.

Loyalty points can offset costs: Tesco Clubcard and Nectar (Sainsbury's) points earned on fuel purchases can be redeemed against future fuel or groceries. Over a year of regular fill-ups, this can represent a tangible saving.

Drive more efficiently: This sounds obvious, but the data is striking. Smooth acceleration and braking, maintaining steady speeds, removing roof boxes when not in use, and keeping tyres properly inflated can improve fuel economy by 10–15%. At 150p per litre, that efficiency gain is worth real money.

Consider whether you're claiming correctly for tax: If you use your vehicle for work, you may be entitled to claim HMRC's approved mileage allowance payments (AMAPs) — currently 45p per mile for the first 10,000 miles in a personal vehicle. If your employer pays less than this rate, you can claim the difference as tax relief.

Looking Ahead: Will Prices Come Down?

The honest answer is: it depends. Several scenarios could push prices lower in the coming months:

• A strengthening pound against the dollar would reduce import costs
• OPEC+ increasing production quotas would ease crude prices
• A further extension — or even a permanent cut — to the fuel duty freeze would provide immediate relief at the pump
• Increased competition from EV adoption reducing overall petrol demand

The fuel duty freeze is the most politically charged variable. The Treasury has extended it repeatedly since 2022, but with public finances under pressure, the 2025 Autumn Budget will be a critical moment. Any decision to allow duty to rise — even back to pre-freeze levels — would add around 5p per litre to pump prices overnight.

The CMA's ongoing monitoring role means there is now more regulatory scrutiny of the market than at any point in recent memory. If evidence emerges that retailers are systematically exploiting price rises while dragging their feet on passing cuts through, the CMA has the tools to act — and the political climate to do so.

For now, though, the burden falls on drivers. Use the transparency tools available to you, drive efficiently, and fill up smart. The system isn't perfectly stacked in your favour — but it's more transparent than it's ever been, and that matters.

Source: BBC News — "Asda boss rejects profiteering claims as petrol price tops 150p"