Asda issues fuel warning to drivers amid temporary shortages

The UK’s second-largest fuel retailer also dismissed claims that forecourts are “profiteering” from recent price increases.

Petrol and diesel costs have climbed sharply since the end of February, after the war between Iran and US-Israeli forces disrupted oil production and supply from the region.

Average unleaded prices have jumped by more than 14p a litre over that period, reaching 147.19p, according to RAC figures published earlier this week.

Allan Leighton, executive chairman of Asda, said the retailer has seen bumper demand from drivers amid price volatility.

The boss stressed that the issue has only affected “the odd pump” at a small number of its petrol forecourts.

He said: “Our fuel volumes are up quite significantly and clearly demand has been outstripping supply.

“Supply is tight and we are all trying hard on that.

“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.

“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.”

The boss also rejected claims that fuel retailers have boosted their profits through recent price increases.

Earlier this month, Prime Minister Sir Keir Starmer said the Government would step in if retailers try “to rip off customers” through price gouging.

In response, Mr Leighton said “no, we are not” when asked if the business was profiteering.

He said: “Our (profit) margin will be down as a result. It is very clear this is not the case.

“People ask where the money is going and the Government are getting a lot of money of the back of this.”

Why is the Iran war driving up fuel prices?

The war is disrupting both oil supply and its routes, and markets are adding a “risk premium” on top.

Analysis from the RAC and others suggests UK motorists have already paid hundreds of millions extra at the pumps since the Iran conflict intensified, with average petrol and diesel prices climbing sharply in March.

Have you noticed that fuel is more expensive? Let us know in the comments