STORY
Asda’s executive chairman Allan Leighton has denied that the supermarket is rigging petrol prices to take advantage of the crisis linked to Iran, as motorists face rising costs and temporary shortages at some forecourts. He said higher prices were being driven by increased wholesale costs and tight supply rather than profiteering by retailers.
Leighton said demand had jumped as drivers filled up in expectation of further price rises, putting pressure on supplies at some of Asda’s 800 petrol stations. He said the company was selling more fuel but was not being given extra allocations by suppliers, leading to short-lived shortages of petrol or diesel at some sites.
His comments came after petrol prices in Britain rose above 150p a litre, with the conflict in the Middle East adding to pressure on oil markets and fuel supply chains. Leighton rejected suggestions that retailers were exploiting the situation, saying Asda’s own margins were being squeezed rather than expanded by the recent turmoil.