Motorists could face “temporary shortages” at the petrol pumps due to the Iran war, the boss of Asda has warned, as the average price of petrol soared above 150p a litre.
Petrol and diesel prices have risen sharply since late February, following disruptions to oil production and supply from the region due to conflict sparked by US-Israeli strikes on Tehran last month.
Now RAC data reveals that the average price of unleaded petrol has surged by more than 17p a litre, now standing at 150.11p, “something drivers haven’t seen since mid-May two years ago”, head of policy Simon Williams said.
The latest warning comes as the cost of oil surged to $110 a barrel again on Friday after Iran announced the closure of 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. Around 20 per cent of the world’s gas and oil is shipped through the waterway, with continued Iranian threats proving highly damaging for global trade.
Reported peace deal talks had begun to bring down the price of Brent crude oil earlier in the week, dropping to $99 a barrel over the weekend. But the latest escalation has now dashed hopes that the fall would be sustained, as prices rose again on Friday.
The rising cost of commodities has a major impact on the UK’s cost of living, especially through impacts on energy and fuel prices. Food prices could also begin to rise, experts have warned, as transportation costs rise across the globe.
Mr Williams said: “Petrol has now broken through the unwelcome milestone of 150p a litre (150.11p), something drivers haven't seen since mid-May two years ago, while the average price of diesel is now approaching 180p at 177.68p.
He warned drivers planning on a road trip this Easter weekend to “plan very carefully where they refuel” as the cost of a weekend getaway by car will be “noticeably higher this year” with average motorway service fuel prices at 166p for unleaded and 182p for diesel.
He said: “The best advice remains to shop around for fuel and make use of free apps such as myRAC to never pay a penny more for fuel than is absolutely necessary.”
Warning of “temporary shortages”, Allan Leighton, Asda’s executive chair, said the supply problem was limited, affecting only “the odd pump” across a small fraction of Asda’s forecourts.
He said that the supermarket, the UK’s second-largest fuel retailer, had seen “bumper demand” from drivers reacting to price volatility.
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. 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.
“The spikiness at the moment makes this tricky for us, as spikes can lead to temporary shortages. These are temporary and are addressed very quickly.”
But he refuted claims of “profiteering” by fuel retailers amidst the recent price hikes.
Earlier this month, the prime minister said the government would step in if retailers try “to rip off customers” through price gouging.
In response, Mr Leighton said “no, we are not” when asked if the business was profiteering.
He said: “Our [profit] margin will be down as a result. It is very clear this is not the case.
“People ask where the money is going and the government are getting a lot of money off the back of this.”
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