Britain's Asda hit by motor fuel shortages as Iran war spurs demand

Tesco

27/03/2026 14:01

By James Davey

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 on Friday.

Motorists are filling up more frequently amid fears of rising prices and potential supply disruption from the conflict. Asda is Britain’s second largest motor fuel retailer after Tesco TSCO.L.

Allan Leighton, Asda’s executive chairman, said fuel sales had increased significantly since the war started at the end of last month.

"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.

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."

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."

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; editing by Sarah Young)

 ((james.davey@thomsonreuters.com))