Asda boss rejects profiteering claims as petrol price tops 150p

The average price of a litre of petrol has risen above 150p a litre for the first time since May 2024, with diesel over 177p, a month after the US and Israel launched attacks on Iran.

The figures from the RAC motoring organisation show the conflict is continuing to push up fuel prices, although they remain below the peaks seen after Russia's invasion of Ukraine.

The latest price data came as the boss of Asda, Allan Leighton, hit back at suggestions forecourts had been profiteering from the crisis, accusing ministers of "pointing the finger" at retailers.

He also said the conflict was affecting fuel supplies in some locations, with a small number of pumps out of use following bumper demand.

Leighton said Asda - which is the UK's second largest fuel retailer - had not closed any forecourts as a result of the conflict and expected any affected petrol pumps to be back in use after its next delivery.

"Our fuel volumes are up quite significantly and clearly demand has been outstripping supply," he said.

"Supply is tight and we are all trying hard on that."

The Petrol Retailers Association (PRA) said the situation amongst suppliers it represented had remained "stable".

"Industry and government remain in regular contact to monitor deliveries and stock levels in the UK as well as the situation internationally," said PRA director Gordon Balmer.

The RAC described the rise in petrol prices above the 150p-a-litre mark as an "unwelcome milestone".

"With the long-awaited four-day Easter weekend almost within touching distance, the cost of getting away by car is going to be noticeably higher this year," said RAC head of policy Simon Williams.

Unleaded petrol is now 17p more per litre than before the conflict began. Diesel is 35p per litre more expensive.

The RAC's advice for drivers is to "plan carefully" where they refuel, making use of apps that allow them to compare prices at local outlets.

Asda's Leighton denied suggestions fuel retailers were taking advantage of the spike in prices to boost their own profits after the government said it would clamp down on any retailers who tried to "rip off" customers.

He said Asda's profit margins were down as a result of the recent spike in prices and that it was "very clear" that it was not a case of profiteering.

"The government is getting a lot of money off the back of this, and before they start accusing people of profiteering, just in my book, there's no credibility in any of it," Leighton said.

"You don't have to be Einstein to work out that that actually is impossible in the current situation.

"I think the government needs to look at what it is doing instead of pointing the finger at everybody else," he added.

While fuel duty is imposed at a flat rate, the government levies VAT on the overall retail cost of petrol and diesel, which means higher prices boost tax revenues.

Brent Crude oil topped $110 a barrel again on Friday, despite President Trump further postponing plans to start destroying Iranian energy plants.

Wholesale oil prices have fluctuated between $73 and $116 a barrel for Brent Crude over the past four weeks, driven by traders' views of whether the flow of oil out of the Middle East was set to get easier or more difficult.

Late on Thursday Trump said talks with Iran were going "very well" and that he was holding off on military strikes on Iran's energy infrastructure until at least 6 April.

In the past such pronouncements have helped to calm the markets.

However, Russ Mould investment director at AJ Bell said comments out of Washington and Tehran seemed to come from "parallel worlds".

Higher wholesale prices push up prices at the pump, often with a slight delay, although a big proportion of the overall fuel price is made up of the cost of transport, processing, retail and tax.

Analysts say every $10 increase in the wholesale oil price pushes up pump prices by around 7p a litre.

It followed reports of truck drivers and other motorists stranded, while businesses say rising costs are affecting their viability.

Albanese is holding an emergency national cabinet meeting on Monday to work out a response to the situation.