Asda Issues Warning Over Petrol Pump Shortages as Iran Conflict Squeezes Supplies
Asda, the UK's second largest fuel retailer, has cautioned about temporary shortages at some of its petrol pumps, driven by supply constraints linked to the ongoing conflict in the Middle East. This situation has propelled the average UK petrol price above 150p per litre for the first time since May 2024.
Executive Insights on Fuel Demand and Supply Pressures
Allan Leighton, the executive chair of Asda, highlighted that the supermarket chain has experienced significantly high demand from drivers as fuel prices have surged over the past four weeks since the war began. He stated, "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."
Leighton emphasised that these shortages are only affecting "the odd pump" at a limited number of forecourts, typically when customers arrive during delivery waits. He added, "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."
Price Surges and Market Dynamics
Petrol and diesel prices have climbed sharply since the US and Israel initiated their campaign against Iran on 28 February. Retaliatory strikes by Iran and the effective closure of the Strait of Hormuz, a critical shipping channel, have disrupted oil production and transport.
- On Friday, the average petrol price in the UK rose to 150.11p per litre, according to the RAC.
- Diesel prices increased even more, reaching an average of 177.68p per litre.
- Before the conflict, petrol averaged 132.83p per litre and diesel 142.38p per litre.
Industry and Government Responses
Leighton rejected claims of "profiteering" by fuel retailers, noting that Asda's profit margins are under pressure from higher costs. He remarked, "People ask where the money is going and the government are getting a lot of money off the back of this."
Fuels Industry UK, representing the sector, assured that petrol and diesel supply in the UK remains stable. A spokesperson said, "Companies are monitoring the fuel supply situation closely and reporting regularly into the energy department on the status now and for the weeks ahead. Supply remains stable in the UK and our members are working hard to ensure that remains the case."
The Department for Energy Security and Net Zero (DESNZ) declined to comment but is understood to be confident in the UK's diverse and resilient fuel supply.
Global Oil Prices and Future Outlook
The global oil price increased by 3.5% on Friday, nearing $112 a barrel, despite Donald Trump's pledge to delay strikes on Iranian energy infrastructure. This rise is expected to keep petrol and diesel costs elevated in the coming weeks.
Simon Williams, the RAC's head of policy, warned, "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. Drivers on long journeys will need to plan very carefully where they refuel."
This echoes previous disruptions, such as the September 2021 queues at petrol stations due to HGV driver shortages, though current issues stem from geopolitical tensions rather than domestic supply chain problems.
