𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The executive chairman of Asda, one of Britain’s largest supermarket chains and its second-biggest fuel retailer, has launched a fierce attack on Labour ministers over accusations that petrol stations are profiteering amid soaring fuel prices. Wading into the growing conflict between the industry and Whitehall, Allan Leighton said the Government had “zero credibility” on the issue and directly criticised Chancellor Rachel Reeves. Relations between retailers and ministers have deteriorated sharply in recent days.

Petrol prices have climbed to their highest level for nearly two years, with the average cost of unleaded surging past 150p a litre for the first time since May 2024. This rise comes as Brent crude oil has climbed back towards $110 a barrel, driven by tensions in the Middle East. Mr Leighton warned that supply is now “tight” because of the ongoing conflict, raising the prospect of temporary shortages at “the odd pump” at some forecourts.

Mr Leighton called on ministers to consider “sharing” some of the extra tax revenue with drivers to ease the pain, particularly as the Chancellor stands to gain a £1 billion VAT windfall if the crisis persists.

His outspoken comments echo criticisms from other retail bosses, including those at Next and Marks & Spencer, who have also challenged Labour over profiteering accusations and rising energy costs, reported the Daily Mail.

The Asda chairman was among a group of supermarket leaders who declined to attend a meeting with Ms Reeves this week to discuss the cost-of-living crisis.

Asda has reported that its own fuel margins have fallen during the recent price surge, underlining that there is no evidence of excessive profiteering by retailers.

The latest pressure on supplies stems from Iran’s announcement that it had intensified its blockade of the Strait of Hormuz, describing the waterway as “closed” to tankers and threatening “harsh measures” against any attempting to pass. Although US President Donald Trump offered Tehran an extension to reach a deal, oil markets showed little confidence, with prices continuing to spike.

Mr Leighton acknowledged that demand has been outstripping supply at times, leading to “spikiness” that can cause temporary shortages while waiting for deliveries.

However, after both the Chancellor and the Prime Minister accused forecourts of “profiteering”, the Asda chief dismissed the claims as baseless. He pointed out that the Treasury is instead benefiting from a significant windfall in petrol tax receipts and VAT as prices rise.

Mr Leighton – the former chairman of Royal Mail Holdings and Post Office Ltd – said: “This whole thing is actually a disgrace. That they try to point the finger at petrol retailers for gouging… it’s a typical camouflage. They point the finger at somebody else, hopefully then nobody will work out that they are the problem.”

Mr Leighton described it as “unacceptable” that ministers had the “gall” to smear businesses in this way. He suggested the Government’s strategy appeared to be simply to deflect blame. He added: “You don’t have to be Einstein to work out where the problem is.”

With families preparing for the Easter getaway next week, the timing could hardly be worse. Analysis by the RAC Foundation estimates that the recent spike in prices has already cost drivers an extra £402 million at the pumps. The RAC’s Simon Williams noted that the long-awaited four-day Easter weekend will be noticeably more expensive for those travelling by car.

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.” He stressed that any issues are temporary and limited to a small number of sites.

A joint statement from Fuels Industry UK and the Petrol Retailers Association sought to reassure motorists, insisting that “supply across the UK is flowing normally and there is no need for any change in usual buying habits.” Nevertheless, concerns remain, with reports suggesting diesel stockpiles could come under strain by mid-May.

The row has piled further pressure on Rachel Reeves to reconsider Labour’s planned fuel duty hike, due to take effect in September. The 5p-per-litre increase would add around £3 to the cost of an average tank of fuel and generate billions more for the Treasury on top of the existing VAT gains.

Mr Leighton’s intervention highlights the deepening rift between the retail sector and the Government at a time when many families are already feeling the squeeze. With Easter travel plans in jeopardy and prices continuing to climb, the accusations and counter-accusations show little sign of abating.