Asda Boss Reports Temporary Petrol Pump Shortages Amid Iran Conflict
The executive chairman of Asda has issued a warning that some petrol pumps on the retailer's forecourts are experiencing temporary shortages due to tight supply conditions linked to the ongoing conflict in the Middle East. This development comes as the average price of unleaded petrol has surged above 150p per litre for the first time in almost two years.
Supply Constraints and Price Increases
Allan Leighton, who leads Asda as executive chairman, emphasised that elevated customer demand has resulted in localised spikes in shortages, but he clarified that these issues are not widespread across the nation. The UK's second-largest fuel retailer has observed a significant increase in fuel volumes, with demand currently outstripping supply in certain areas.
According to recent data from the RAC, the average price of unleaded petrol has risen by more than 17p per litre since the end of February, reaching 150.11p. Diesel prices have also climbed sharply, now approaching 180p at 177.68p per litre. Simon Williams, head of policy at the RAC, commented on the timing, noting that with the Easter weekend approaching, the cost of car travel will be noticeably higher this year.
Rejection of Profiteering Accusations
In response to accusations that fuel retailers might be engaging in profiteering amid these price hikes, Mr Leighton firmly rejected such claims. He stated that Asda's profit margins are actually decreasing as a result of the current market conditions and highlighted that the government benefits substantially from increased fuel duty revenues.
Prime Minister Sir Keir Starmer recently warned that the government would intervene if retailers attempted to exploit customers through price gouging. Mr Leighton responded directly, asserting, "No, we are not" profiteering, and explained that the financial dynamics are transparent and not driven by retailer greed.
Industry Perspective and Supply Stability
Fuel Industry UK, the representative body for the fuel sector, has reported that the supply of petrol and diesel remains stable across the country. A spokesman for the organisation confirmed that companies are closely monitoring the fuel supply situation and providing regular updates to the energy department to ensure continuity in the weeks ahead.
Mr Leighton provided further context on the supply chain, noting that while the shortages are temporary and quickly addressed, they can occur when waiting for deliveries. He described the situation as "spiky", with occasional disruptions leading to brief shortages at individual pumps, but assured that no forecourts have been completely without fuel.
Background on UK Fuel Imports and Production
The conflict between Iran and US-Israeli forces has disrupted oil production and supply from the Middle East, contributing to the recent price increases. Official data reveals that last year, approximately 90% of crude oil refined in the UK was imported, with only about 1% sourced from the Middle East. The majority of imports came from the United States and Norway, while around 7% of diesel was imported from the Middle East.
Interestingly, UK refinery production of petrol from crude oil actually exceeded domestic demand in 2025, indicating that the current shortages are more related to distribution and local demand spikes rather than a fundamental lack of supply. This underscores the temporary nature of the issues described by Asda's leadership.
