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Asda rejects profiteering claims amid rising fuel costs
Asda's executive chairman has dismissed accusations that retailers are exploiting surging oil prices to inflate profits, as UK fuel costs climb to their highest levels in nearly two years.
Fuel prices surge past 150p per litre
Petrol prices exceeded 150p per litre on Friday for the first time since 2022, while diesel surpassed 177p, according to data from the RAC. The increases follow military strikes by the US and Israel on Iran last month, though prices remain below the peaks seen after Russia's invasion of Ukraine.
Filling a typical family car with unleaded petrol now costs nearly £80-almost £7 more than at the start of March. Diesel drivers face an even steeper rise, with a full tank costing over £91, up £13 from earlier in the month.
Supply constraints and demand pressures
Asda's Allan Leighton attributed the price hikes to tight supply and surging demand, noting that some pumps had temporarily run dry. However, he assured that no Asda forecourts had closed due to the conflict and expected affected pumps to be restocked after the next delivery.
"Our fuel volumes are up significantly, and demand has clearly outstripped supply. The situation is tight, and we're all working hard to manage it."
Allan Leighton, Asda Executive Chairman
The Petrol Retailers Association (PRA) described the broader supply situation as "stable," with industry and government in regular contact to monitor deliveries and stock levels.
Government scrutiny and industry backlash
Retailers have pushed back against government accusations of price gouging, with Leighton calling the claims "uncredible" and urging ministers to focus on their own policies. He argued that higher fuel prices primarily benefit the government through increased VAT revenues, as the tax is levied on the retail price.
The Competition and Markets Authority (CMA) has announced plans to intensify monitoring of the sector amid rising tensions. Meanwhile, the RAC described the 150p-per-litre milestone as an "unwelcome" development ahead of the Easter weekend, when travel demand is expected to spike.
Global oil market volatility
Brent Crude prices topped $110 a barrel on Friday, driven by uncertainty over Middle East supply routes. Wholesale prices have fluctuated between $73 and $116 over the past month, reflecting shifting trader sentiment about geopolitical risks.
US President Donald Trump's decision to delay military strikes on Iran's energy infrastructure until at least April 6 helped ease market jitters, though analysts warn that rhetoric from Washington and Tehran remains disjointed. Russ Mould, investment director at AJ Bell, described the two sides as operating in "parallel worlds."
Analysts estimate that every $10 increase in oil prices adds roughly 7p per litre to pump prices, though retail costs are also influenced by transport, refining, and tax.
International responses to fuel crisis
In Australia, Prime Minister Anthony Albanese convened an emergency national cabinet meeting for Monday to address soaring petrol prices, which have left truck drivers stranded and businesses struggling. Albanese reassured the public that fuel supplies remain "secure," despite reports of disruptions.
