Asda warns of ‘temporary’ petrol shortages caused by Trump’s war in Iran as prices soar and Strait of Hormuz remains blocked

Asda today warned that some petrol stations were experiencing ‘temporary disruptions’ due to the war in Iran.

Supply problems at some forecourts are due to the price of petrol rising above 150p a liter for the first time in almost two years.

Fuel costs are soaring amid conflicts in the Middle East, where Iran has effectively closed the Strait of Hormuz, a vital shipping route through which 20 percent of the world’s oil passes each year.

Allan Leighton, Asda’s chief executive, said: ‘Our fuel volumes have increased quite significantly and demand has clearly outpaced supply.

‘Supply is limited and we are all working hard for it.

‘The issue is a temporary one and some may see issues while they wait for delivery and we can expect this to continue.

‘The current spikes make this difficult for us because spikes can lead to temporary shortages. These are temporary and resolved very quickly.’

Mr Leighton said the retailer had seen strong demand from motorists in response to the fluctuation in prices.

He highlighted that the issue only affects ‘single pumps’ in a small number of oil forefields and that no forecourt is completely fuel-free.

He said: ‘Our fuel volumes have increased quite significantly and demand has clearly outpaced supply. The supply is limited and we are all working hard for it.

Fuel costs are soaring amid conflicts in the Middle East, where Iran has effectively closed the Strait of Hormuz

‘The issue is a temporary one and some may see issues while they wait for delivery and we can expect this to continue.

‘The current spikes make this difficult for us because spikes can lead to temporary shortages. These are temporary and resolved very quickly.’

The rise in oil prices, the vital component of both gasoline and diesel, has spooked businesses and families.

Industries linked to heavy fuel use are resorting to drastic measures, with taxi companies increasing prices and transport companies imposing emergency fuel surcharges.

While some forecourts are running out of oil, owners of others are reporting a slump in trade and attacking Chancellor Rachel Reeves for fueling abuses against their staff with allegations of profiteering.

Businesses are calling on the government to cancel a planned 5p fuel duty increase and cut VAT rates on fuel – VAT rates currently charged at 20 per cent mean more money going to the Treasury as pump prices rise.

The average margin retailers receive on a liter of petrol is currently six per cent, according to the RAC.

Since the outbreak of war, prices have risen by around 17p per liter for petrol and 30p per liter for diesel, according to an analysis this week; this has cost drivers in the UK more than £300 million.

The government has faced calls to cancel a 5p increase in fuel duty as the country grapples with the cost of living.

Goran Raven, whose family has owned the same oil field in Romford for four generations, accused the government of ‘making a profit’ from the crisis and said ministers’ comments fueled abuses against staff at the pumps.

Mr Raven described how rising costs had seen a decline in trade, with 25 per cent fewer transactions taking place this morning than on a normal Monday before the conflict began.

‘We had to raise our prices to huge, obscene amounts just to pay my staff and keep my business going,’ he said.

The businessman, who said his firm receives a fixed margin of 7p per litre, which remains constant regardless of wholesale cost fluctuations, said his staff had been subjected to ‘vile’ abuse in recent weeks.

He drew attention to the comments of Chancellor Rachel Reeves, who had previously promised to take action against allegations of ‘rent-mongering’ by fuel companies.

He told the Mail: “I understand people want to vent their anger and vent their frustrations, but my team working behind the counter are the wrong people to try.”

‘Do I believe that there is profiteering in fuel oil? Yes I am and this place is a treasure.

‘As these price increases are reflected in the VAT increases, the only person making profit is the treasury. ‘They can take the pain away from everyone, but they don’t want that.’

He added: ‘Rachel Reeves could stop most of the abuse my staff are subjected to with one word. He’s fueling this.’

Goran Raven, whose family has owned the same oil field in Romford for four generations, accused the government of ‘capitalising’ on the crisis and said comments from ministers were fueling abuses against staff at the pumps

Mr Raven called on the government to cancel a planned fuel duty increase in the autumn and reduce the VAT rate on the sector.

Fellow petrol station boss Darren Briggs, Director of Ascona Group, which operates 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.

‘The government’s blaming of oil retailers is very lazy, uneducated, uninformed and dangerous, it’s that simple.

‘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 had seen a 20 per cent increase in incidents of staff mistreatment since the conflict began.

Asda’s boss warned today that there are ‘temporary outages’ at pumps at some forecourts due to supply problems caused by the war.

Britain’s second-largest fuel retailer also rejected accusations that oil dealers were “profiting” from high prices in recent weeks.

Allan Leighton, Asda’s chief executive, said: ‘Our fuel volumes have increased quite significantly and demand has clearly outpaced supply.

Darren Briggs, director of Ascona Group, which operates around 70 sites across the UK, said it was ‘lazy’ for the government to blame petrol stations for price rises

‘Supply is limited and we are all working hard for it.

‘The issue is a temporary one and some may see issues while they wait for delivery and we can expect this to continue.

‘The current spikes make this difficult for us because spikes can lead to temporary shortages. These are temporary and resolved very quickly.’

Meanwhile, serious measures are being taken in industries based on intensive fuel use.

Due to the shortage of pumps, some taxi companies are forced to increase rates.

Apollo Taxis in Wrexham has increased fares by ten per cent, while Stanley Taxis in County Durham has increased its minimum fare and added an extra 12p per kilometre.

Kate Lester, owner of courier firm Diamond Logistics, told the Mail that her business was facing additional costs such as emergency fuel charges from carriers and hauliers.

It has seen fuel costs rise by more than 25 per cent – up to an extra £45 per tank of a van.

At the same time, consumers faced with extra expenses are experiencing a decrease in business as they feel their wallets are being squeezed and are cutting back on non-essential expenses.

He added: ‘This government is absolute hell for business. Diesel is a commercial fuel, if we want this country to continue production, let’s do something about the fuel tax.

‘It’s time the government gave us some support instead of kicking us in the head.’

Stephen Bennett, of Bennett’s Removals in Reading, said his fleet of 12 HGVs meant it had spent an extra £4,000 a week on fuel since the start of the crisis.

As the third generation of his family to earn their living from transportation, he was forced to resort to measures never seen before.

‘We did this in Ukraine initially, we undertook the cost,’ he said.

‘However, from 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.

‘There is nothing we can do to change diesel prices apart from having our own oil refinery but I would like to see a cut in fuel duty.’

He continued: ‘I hope the Government will intervene to stop diesel rising above £2 a litre, but I wouldn’t be surprised if that happens by next week.’

Richard Smith, chief executive of the Road Transport Association, said: ‘This week was a missed opportunity for the Chancellor to cut fuel duty and reassure key sectors like ours. We welcome this in terms of fuel price review, but we are clear that this should not end on the forecourt.

‘Our core sector is an important economic enabler. We therefore call for the cancellation of the planned fuel tax increase and plans to tie it to inflation. ‘The increase in fuel tax will be a big blow to many companies.’

‘We need to see the government take action. We would like to meet with the Chancellor urgently to discuss these issues in more detail.’