LONDON, March 27 (Reuters) - British supermarket Asda is experiencing temporary fuel shortages at some of its forecourts after a surge in demand driven by the U.S.-Israeli war on Iran, its boss said
Britain's Asda hit by motor fuel shortages as Iran war spurs demand
Asda Faces Fuel Shortages Amid Rising Demand
By James Davey
LONDON, March 27 (Reuters) - British supermarket group Asda is experiencing temporary fuel shortages at some of its forecourts after a surge in demand driven by the U.S.-Israeli war on Iran, its boss said on Friday.
Motorists are filling up more frequently amid fears of rising prices and potential supply disruption from the conflict. Asda operates 800 fuel stations and is Britain’s second largest motor fuel retailer after Tesco.
Impact of the Iran Conflict on Fuel Demand
Allan Leighton, Asda’s executive chairman, said fuel sales had increased significantly since the war started at the end of last month.
Allocation and Stock Challenges
"We're not getting any more than our allocation from the suppliers. If your allocation is the same and your (sales) volumes are up, then your stocks are going to go down, it's as simple as that," he told reporters after Asda published annual results.
Managing Spikes in Demand
Leighton said the "spikiness" of demand meant it was a difficult situation to manage.
"Those spikes can lead to temporary shortages. That can be a pump, a product, unleaded petrol or diesel, a site. But they're temporary and they tend to get redressed very quickly," he said.
"You can expect to see that while this (war) continues."
Industry Response and Consumer Guidance
Calls for Normal Buying Habits
NO NEED FOR CHANGE IN FUEL BUYING HABITS, SAYS INDUSTRY
Responding to Leighton's comments, a joint statement from Fuels Industry UK CEO Elizabeth de Jong and the executive director of the Petrol Retailers Association, Gordon Balmer, called on motorists to stick to their normal fuel purchasing.
"We are aware of reports circulating about fuel availability at a small number of forecourts for one retailer. Supply across the UK is flowing normally and there is no need for any change in usual buying habits," they said.
Asda's Position on Fuel Pricing
Denial of Profiteering Accusations
ASDA DENIES PROFITEERING ON FUEL
Earlier this month, Britain's finance ministry met petrol retailers following claims they were profiteering from rising fuel prices.
"It's very clear that that is not the case," said Leighton, noting Asda's margin "will be down".
"The government are getting a lot of money off the back of this," he said. "Instead of pointing the finger at everyone else, which it does on a consistent basis, it ought to point the finger at itself."
Impact on Supply Chain and Inflation
Leighton said Asda's food and general merchandise supply chain was generally holding up during the crisis. However, he said an impact on inflation was inevitable.
(Reporting by James Davey; additional reporting by Susanna Twidale; editing by Sarah Young and Louise Heavens)
