Asda executive chairman Allan Leighton has pushed back against claims that petrol retailers are profiteering, as UK fuel prices climb to their highest level in almost two years.
The comments come after the average price of unleaded rose above 150p a litre for the first time since May 2024, adding further pressure to household budgets and intensifying scrutiny of fuel costs ahead of the Easter getaway.
Leighton, who chairs one of the UK’s largest supermarket groups and second-biggest fuel retailers, said recent accusations aimed at forecourts were misplaced, arguing that retailers were not responsible for the latest spike in prices.
He said the situation had been driven by tighter supply and rising crude prices, with Brent crude climbing back towards $110 a barrel amid escalating tensions in the Middle East.
Leighton also warned that supply conditions had become more strained, which could result in occasional temporary shortages at some forecourts while operators wait for deliveries.
He said: “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.”
He added that any disruption was likely to be limited to a small number of sites, rather than reflecting a widespread issue across the market.
The row follows criticism from ministers over high pump prices, with both Chancellor Rachel Reeves and Prime Minister Keir Starmer reported to have suggested that some forecourts were benefiting unfairly from the recent surge in prices.
Leighton rejected that characterisation, arguing that fuel retailers were instead facing margin pressure during the current period of volatility. Asda has said its own fuel margins have fallen during the latest price spike.
He said: “This whole thing is actually a disgrace. That they try to point the finger at petrol retailers for gouging… it’s a typical camouflage. They point the finger at somebody else, hopefully then nobody will work out that they are the problem.”
Leighton also suggested ministers should consider using part of the additional tax take generated by higher fuel prices to support motorists if elevated prices persist.
Reports have suggested the Treasury could receive a significant VAT windfall if fuel prices remain high, while the planned 5p per litre fuel duty rise due in September is likely to add further pressure on drivers unless policy changes are made.
The intervention marks a further cooling in relations between major retailers and government, with reports that Leighton was among a number of supermarket leaders who declined to attend a recent meeting with Reeves on the cost-of-living crisis.
His comments also echo broader frustrations voiced by senior figures across retail, as businesses continue to grapple with higher operating costs, fragile consumer confidence and increased political scrutiny over pricing.
The latest pressure on supply has been linked to developments in the Strait of Hormuz, after Iran said it had intensified its blockade of the key shipping route and threatened action against tankers attempting to pass through. Markets remained unsettled despite diplomatic efforts to ease the situation, keeping oil prices elevated.
Leighton said the resulting imbalance between supply and demand had created “spikiness” in the market, contributing to localised issues at the pumps.
In a joint statement, Fuels Industry UK and the Petrol Retailers Association said supply across the UK was continuing to move normally and there was no reason for motorists to change their usual buying habits.
Even so, the price rises are already having a tangible impact on consumers. Analysis from the RAC Foundation estimated that the recent increase in fuel prices has added £402m to motorists’ costs, with the timing particularly acute as many families prepare to travel over Easter.
As fuel prices continue to rise, the dispute between government and the sector shows little sign of easing.
Click here to sign up to Retail Gazette‘s free daily email newsletter
