Asda Executive Chairman Addresses Fuel Supply Concerns Amid Middle East Conflict
The chairman of Asda, Allan Leighton, has confirmed that some petrol pumps across the UK are experiencing temporary shortages due to supply constraints linked to the ongoing conflict between Iran and US-Israeli forces in the Middle East. This announcement comes as the average price of unleaded petrol has surged above 150p per litre for the first time in almost two years.
Price Increases and Supply Chain Pressures
According to recent data from the RAC, the average price of unleaded petrol has increased by more than 17p per litre since late February, reaching 150.11p. Diesel prices have also climbed significantly, now approaching 180p at 177.68p per litre. RAC head of policy Simon Williams described this as an unwelcome milestone, noting that drivers haven't seen petrol at this price level since mid-May two years ago.
Mr Leighton explained that while supply remains tight, the shortages are not nationwide. He emphasised that only the odd pump at a small number of Asda forecourts has been affected, with no locations experiencing complete fuel shortages. Our fuel volumes are up quite significantly and clearly demand has been outstripping supply, he stated, adding that the situation is temporary and being addressed quickly.
Industry Response and Government Scrutiny
The Asda chairman firmly rejected accusations that fuel retailers might be profiteering from recent price increases. When questioned about whether the business was engaging in price gouging, Mr Leighton responded unequivocally: No, we are not. He argued that profit margins would actually decrease as a result of the current situation and pointed out that the government benefits substantially from fuel taxes during such periods.
This statement comes after Prime Minister Sir Keir Starmer warned earlier this month that the government would intervene if retailers attempted to rip off customers through excessive pricing. Fuel Industry UK, representing the broader fuel sector, maintains that petrol and diesel supply remains stable across the country, with companies closely monitoring the situation and reporting regularly to the energy department.
Broader Context and Market Dynamics
The disruption stems from the Middle East conflict's impact on oil production and supply chains. While only about 1% of the UK's imported crude oil (used for petrol production) comes from the Middle East, with most originating from the US and Norway, the market remains sensitive to global supply shocks. Approximately 7% of diesel imports are sourced from the Middle East region.
Official data indicates that UK refinery production of petrol from crude oil actually exceeded domestic demand in 2025. However, current market volatility has created what Mr Leighton describes as spikiness in demand, leading to localized supply challenges. The issue is a temporary one, and some could see issues when we are waiting for delivery, and we can expect to see that continue, he explained.
With the Easter holiday weekend approaching, RAC's Simon Williams warned that the cost of getting away by car is going to be noticeably higher this year. The combination of increased seasonal demand and ongoing supply constraints presents continued challenges for both retailers and consumers in the coming weeks.
