Asda today warned that some of its petrol stations are experiencing ‘temporary shortages’ caused by the war in Iran.
The supply issues at some forecourts come as the price of petrol jumped above 150p per litre for the first time in almost two years.
Fuel costs have been spiralling amid 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.
Allan Leighton, executive chairman of Asda, 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.’
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.
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.
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
‘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.’
As the vital ingredient in both petrol and diesel, the subsequent rise in oil prices – hitting above $105 per barrel in recent days – 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.
Petrol is running out at some forecourts, while at others owners report 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 six 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 more than £300million more, 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.
At some forecourts pumps are experiencing ‘temporary shortages’ due to supply issues brought on by the war, the boss of Asda warned today.
The UK’s second largest fuel retailer also rejected accusations that petrol sellers might be ‘profiteering’ from higher pricing in recent weeks.
Allan Leighton, executive chairman of Asda, said: ‘Our fuel volumes are up quite significantly and clearly demand has been outstripping supply.
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
‘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.’
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 up charges by ten 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.’
