The boss of Asda has warned of 'temporary shortages' at some petrol pumps as the conflict in the Middle East squeezes supplies, pushing average UK petrol prices above 150p a litre. Allan Leighton, executive chair of the supermarket chain, which is the UK's second largest fuel retailer, said demand had outstripped supply as prices jumped over the past four weeks since the war began.
Leighton stressed that the shortages only affected 'the odd pump' at a small number of forecourts when customers arrived just before a delivery. 'The spikiness at the moment makes this tricky for us, as spikes can lead to temporary shortages. These are temporary and are addressed very quickly,' he said.
Petrol and diesel prices have climbed significantly since the US and Israel began their campaign against Iran on 28 February. Retaliatory Iranian strikes and Tehran's effective closure of the Strait of Hormuz have disrupted oil production and transport. On Friday, the average petrol price reached 150.11p a litre, while diesel hit 177.68p, according to the RAC.
Prime Minister Keir Starmer said the government would 'step in' if fuel companies tried to 'rip off customers'. Leighton rejected claims of profiteering, noting that Asda's profit margin was under pressure from higher fuel costs. 'People ask where the money is going and the government are getting a lot of money off the back of this,' he said.
Fuels Industry UK stated that fuel supply in the UK remains 'stable', with companies monitoring the situation closely. The Department for Energy Security and Net Zero declined to comment but is understood to be confident in the UK's diverse and resilient fuel supply. Global oil prices climbed 3.5% to almost $112 a barrel on Friday, likely keeping pump prices high in the coming weeks.
RAC head of policy Simon Williams warned that motorists taking Easter trips would face noticeably higher costs. 'Drivers on long journeys will need to plan very carefully where they refuel,' he said. Queues at petrol stations were last seen in September 2021 during a shortage of HGV drivers.
