Supermarket Chief Condemns Government Accusations as Petrol Prices Soar
The chairman of one of Britain's largest supermarket chains has launched a scathing attack on Labour ministers over their claims that petrol retailers are profiteering from soaring fuel prices. Asda chairman Allan Leighton on Friday dismissed the accusations as having 'zero credibility' and described the government's position as 'a typical camouflage' to deflect attention from their own role in the crisis.
Fuel Prices Reach Highest Level in Nearly Two Years
Average petrol prices have surged past 150p per litre for the first time since May 2024, dealing a significant blow to families preparing for the Easter getaway next week. The price spike comes as Brent crude oil has risen again to $110 per barrel, with further increases expected in the coming weeks.
Mr Leighton warned that 'supply is tight' due to the ongoing conflict in the Middle East, particularly following Iran's announcement that it had stepped up its blockade of the Strait of Hormuz. The vital waterway for oil shipments has been effectively closed, with Tehran threatening 'harsh measures' against any tanker ships attempting to pass through.
Government Accusations Dismissed as 'Unacceptable'
The supermarket chief took particular aim at Chancellor Rachel Reeves and Prime Minister Keir Starmer after both accused forecourts of profiteering. 'This whole thing is actually a disgrace, that they try to point the finger at petrol retailers for gouging,' Mr Leighton stated. 'They point the finger at somebody else, hopefully then nobody will work out that they are the problem.'
He highlighted that the Treasury stands to gain a £1 billion VAT windfall if the fuel crisis continues, calling on ministers to consider sharing this extra tax revenue with drivers to alleviate some of the financial pain at the pumps.
Temporary Shortages and Supply Challenges
As the UK's second-largest fuel retailer, Asda has experienced significant challenges with supply and demand. Mr Leighton explained that 'clearly demand has been outstripping supply' as Western oil deliveries have been squeezed by the Strait of Hormuz closure.
While temporary shortages have affected 'the odd pump' at a small number of forecourts, he stressed that 'supply is tight and we are all trying hard on that.' The situation has been described as 'concerning' by industry sources, with warnings that diesel stockpiles could run low by mid-May.
Industry Pressure on Fuel Duty Hike
The latest surge in oil prices has collectively cost drivers an extra £402 million at the pumps according to analysis by the RAC Foundation, piling fresh pressure on Chancellor Rachel Reeves to scrap Labour's planned 5p-per-litre fuel duty hike scheduled for September.
It has emerged that Ms Reeves was privately urged to abandon the fuel duty increase just days after the Middle East conflict broke out. In a March 3 letter from petrol bosses seen by the Daily Mail, the Chancellor was urged to do everything 'within your power' to support drivers facing punishing prices. However, she ignored the warning without replying and has vowed to press ahead with the increase, which will add approximately £3 to the cost of an average fill-up.
Broader Industry Backlash
Mr Leighton's comments echo similar criticisms from other retail leaders, including the bosses of Next and Marks & Spencer, who have also attacked Labour over profiteering accusations and rocketing energy bills. The Asda chairman was among several supermarket executives who declined to attend a meeting with Ms Reeves this week to discuss the cost of living crisis.
Simon Williams of the RAC commented: 'With the long-awaited four-day Easter weekend almost within touching distance, the cost of getting away by car is going to be noticeably higher this year.'
Despite the tensions, industry bodies including Fuels Industry UK and the Petrol Retailers Association issued a joint statement on Friday night assuring that 'supply across the UK is flowing normally' and there is no need for changes in usual buying habits.
