UK supermarket boss warns of fuel shortages over Iran war as petrol prices soar above 150p a litre
Asda’s boss has warned motorists could face “temporary disruptions” at petrol pumps due to the Iran war as the average petrol price rises above 150p per litre.
Gasoline and diesel prices have risen sharply since the end of February following disruptions in oil production and supplies in the region due to conflicts sparked by US-Israeli attacks on Tehran last month.
Now RAC data reveals the average price of unleaded petrol has risen by more than 17p per liter and now stands at 150.11p; “It’s something drivers haven’t seen since mid-May two years ago,” said head of policy Simon Williams.
The latest warning came as the cost of oil rose again to $110 per barrel on Friday after Iran announced that it was closing the Strait of Hormuz.
The key shipping lane provides the only passage from the Persian Gulf to the open ocean, making it a crucial point for the oil industry. Approximately 20 percent of the world’s gas and oil is transported by water, and Iran’s ongoing threats are severely damaging to global trade.
It was reported that peace agreement talks began to reduce the price of Brent crude oil at the beginning of the week, falling to $99 per barrel by the end of the week. However, the latest rise dashed hopes that the decline would continue as prices rose again on Friday.
Rising commodity prices are having a significant impact on the UK’s cost of living, particularly through impacts on energy and fuel prices. Experts have warned that food prices could also start to rise as transportation costs rise around the world.
Mr Williams said: “Petrol has now broken the unwelcome milestone of 150p per liter (150.11p), something motorists have not seen since mid-May two years ago, with the average price of diesel now approaching 180p at 177.68p.
He warned drivers planning a road trip this Easter weekend to “plan where they refuel very carefully”; because the cost of a weekend getaway by car will be “significantly higher this year” and average prices on motorway services will be 166p for unleaded and 182p for diesel.
He said: “The best advice is to use free apps like myRAC to shop for fuel and avoid paying a penny more for fuel than is absolutely necessary.”
Allan Leighton, Asda’s chief executive, warned of “temporary shortages”, saying the supply issue was limited and only affected the “odd pump” in a small part of Asda’s forecourts.
The supermarket, Britain’s second-largest fuel retailer, said it was seeing “bumper demand” from motorists reacting to price fluctuations.
He said: “Our fuel volumes have increased quite significantly and it is clear that demand far exceeds supply.
“Supply is tight and we are all working hard on this. The issue is temporary and some may encounter 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 are addressed very quickly.”
However, he denied allegations that fuel retailers were “earning profit” during the recent price increases.
Earlier this month the prime minister said the government would intervene if retailers tried to “rip off customers” through price gouging.
In response, Mr Leighton said “no, we are not” when asked whether the business was profiteering.
“As a result our (profit) margin will decrease, it is very clear that this is not the case,” he said.
“People ask where the money goes, and the government makes a lot of money from it.”
