Asda boss warns petrol supplies are 'tight' amidst Trump's war in Iran as prices soar and Strait of Hormuz remains blocked
The boss of Asda today warned that petrol supplies on its forecourts are 'tight' thanks to Donald Trump's war with Iran.
Allan Leighton, executive chairman at the supermarket chain, spoke out about supply issues at some forecourts as the price of petrol jumped above 150p per litre for the first time in almost two years.
Costs have been spiralling due to the conflict in the Middle East which has seen Iran effectively shut the Strait of Hormuz - a vital shipping lane which sees 20 per cent of the world's oil pass through it every year.
There are currently no signs of Tehran easing its blockade, despite Donald Trump saying negotiations to end the war are 'going very well'.
Iran's Revolutionary Guards today said the strait remains 'prohibited' to 'hostile shipping', adding that any attempts to transit will be met with a 'harsh response'.
Asda is the UK's second largest fuel retailer, and Mr Leighton warned today that 'demand has been outstripping supply'.
He added: '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.'
An Asda spokesperson added that all forecourts are receiving 'normal fuel deliveries, and sites are operating as usual' - but warned that pumps may be briefly unavailable while being refilled due to the additional demand.
However, industry bosses urged drivers not to change their usual refuelling habits.
Elizabeth de Jong, the chief of Fuels Industry UK, and Gordon Balmer, the executive director of the Petrol Retailers Association, said in a joint statement: 'We're aware of reports circulating about fuel availability at a small number of forecourts for one retailer.
'Supply across the UK is flowing normally and there is no need for any change in usual buying habits.'
At the same time, Rachel Reeves has been accused of profiteering from the crisis at a time when she is pushing retailers to keep costs down for motorists.
Leighton joined a chorus of bosses criticising the Chancellor, who is raking in soaring tax receipts from higher prices at the pumps.
He said the Government was 'pointing fingers at people' and had 'zero credibility' when it comes to talk of profiteering by others.
'This whole thing is actually a disgrace, that they try to point the finger at petrol retailers for gouging,' he told the Daily Mail.
Some petrol stations are running low on fuel, as pumps were closed in Teignmouth, Devon this morning
Fuel costs have been spiralling amid the conflict in the Middle East which has seen Iran effectively shut the Strait of Hormuz
'And, you know, it's a typical camouflage, they point the finger at somebody else, hopefully then nobody will work out that [they] are the problem.'
He said ministers were wasting time attacking businesses when they should be taking steps to help employers create jobs for young people.
'You have to go over more hurdles in the Grand National to get anything done,' Leighton said.
Kemi Badenoch joined some of Britain's top business chiefs in attacking the Government for raking in soaring tax receipts from higher prices at the pumps.
The boss of Next, Lord Wolfson, said the Government must not end up profiting from the crisis and M&S chief Stuart Machin blamed Labour's green levies for driving up energy bills for businesses.
Mr Leighton said the retailer has seen bumper demand from drivers in response to the volatility in prices.
He stressed the issue has only affected 'the odd pump' at a small number of its petrol forecourts, highlighting no forecourts have been fully short of fuel.
As the vital ingredient in both petrol and diesel, the rise in oil prices has left businesses and families fearful.
Industries associated with heavy fuel usage are resorting to drastic measures, with taxi firms raising prices and haulage companies introducing emergency fuel surcharges.
Owners of some forecourts have reported a drop-off in trade and hit out at Chancellor Rachel Reeves for stoking abuse of their staff with claims of profiteering.
Businesses are calling for the Government to scrap its planned 5p fuel duty increase and reduce VAT rates on fuel - currently charged at 20 per cent, meaning as pump prices rise, more money goes to the Treasury.
The average margin taken by retailers on a litre of petrol is currently 6 per cent, according to the RAC.
Since the outbreak of war, prices have risen by around 17p a litre for petrol and 30p a litre for diesel – costing UK drivers an extra £300million, according to one analysis this week.
As the country struggles with the cost of living, the Government has faced calls to cancel an upcoming 5p increase to fuel duty.
Goran Raven, whose family has owned the same petrol forecourt in Romford for four generations, accused the Government of 'profiteering' from the crisis and said comments from ministers have fuelled abuse of his staff at the pumps.
Mr Raven told how spiralling costs have seen a drop in trade, with 25 per cent fewer transactions this morning compared to a regular Monday prior to the outbreak of the conflict.
'We have had to put our prices up enormously, to obscene amounts, just so I can pay my staff and stay in business,' he said.
The businessman, who says his firm takes a flat 7p-per-litre margin that remains constant regardless of wholesale cost fluctuations, said his staff have been subjected to 'vile' abuse in recent weeks.
He highlighted comments from Chancellor Rachel Reeves, who previously pledged to clamp down on alleged 'profiteering' from fuel firms.
'I get that people want to vent and get their frustration out but my team who work behind the counter are the wrong people to be having a go at,' he told the Mail.
'Do I believe there is profiteering in fuel? Yes I do and it's the Treasury.
'As these price rises go up the proportion of VAT increases, the only people profiteering is the Treasury. They could take the pain away from everybody but they don't want to.'
He added: 'In one speech Rachel Reeves could stop a lot of the abuse my staff are getting. She is stoking it.'
Goran Raven, whose family has owned the same petrol forecourt in Romford for four generations, accused the Government of 'profiteering' from the crisis and said comments from ministers have fuelled abuse of his staff at the pumps
Mr Raven called for the Government to cancel its planned rise in fuel duty in the autumn, and reduce the rate of VAT for the industry.
Fellow petrol station boss Darren Briggs, a Director at Ascona Group who runs around 70 forecourts across the UK, agrees.
Hitting out at claims of profiteering, he said stations purchase fuel which is priced at either a daily or weekly average, meaning price volatility can be high.
'It's very lazy of the Government to blame the petrol retailers, it's uneducated and ill informed and it's dangerous, it's as simple as that.
'They need to understand how the industry works.
He called for an immediate reduction in VAT on petrol and diesel, saying this cut in price could instantly be passed on to customers.
Mr Briggs said his business has seen a 20 per cent rise in instances of abuse of staff since the conflict began.
Darren Briggs, a Director at Ascona Group who runs around 70 forecourts across the UK, said it is 'lazy' of the Government to blame petrol stations for price rises
The Treasury's position is understood to be that while rising fuel prices does mean an increase in VAT revenue from petrol and diesel, the resulting impact on families' disposable income means revenue will decrease in other areas.
Meanwhile in industries which rely on heavy use of fuel, drastic measures are being taken.
Some taxi firms are being forced to increase rates in response to the pain at the pumps.
Apollo Taxis in Wrexham has upped charges by 10 per cent, while Stanley Taxis in County Durham has increased its minimum fare and added an extra 12p per mile to its mileage rate.
Owner of courier firm Diamond Logistics Kate Lester told the Mail her business is facing additional costs such as emergency fuel charges from carriers and haulers.
She has seen fuel costs rising by more than 25 per cent, or up to £45 extra per van tank.
At the same time as facing extra expenses, her business is also experiencing a reduction in business as consumers feel the pinch on their wallets and cut back on non-essential spending.
She added: 'This Government has been hellish for business full stop. Diesel is a commercial fuel, if we want this country to keep on delivering then do something on fuel duty.
'It's about time the Government gave us some support rather than a kick in the head.'
Stephen Bennett, of Bennett's Haulage in Reading, said his fleet of 12 HGVs means he is already spending an extra £4,000 per week on fuel since the start of the crisis.
Now, as the third generation in his family to make a living from haulage, he has had to resort to never-before measures.
'To begin with, and it's what we did with Ukraine, we have swallowed the cost,' he said.
'But as of the start of this week we have implemented an emergency fuel surcharge of seven per cent for the first time in the company's history.
'Short of owning your own oil refinery there's not anything we can do to change diesel prices but I would like to see a cut to fuel duty.'
He continued: 'I'm hoping the Government are going to step in to stop diesel going above £2 per litre, but I wouldn't be surprised if it does by next week.'
Managing Director of the Road Haulage Association Richard Smith said: 'This week was a missed opportunity from the Chancellor to cut fuel duty and reassure key sectors like ours. In terms of fuel price scrutiny, we welcome it, but we're clear that this must not stop at the forecourt.
'Our essential industry is a key economic enabler. That is why we have been calling for the planned fuel duty rise to be scrapped, along with plans to link it to inflation. A hike in fuel tax would be a hammer blow for many firms.'
'We need to see action from Government. We want to meet with the Chancellor urgently to discuss these matters in greater detail.'
