Asda Boss Rejects Profiteering Claims as Petrol Price Tops 150p
The executive chairman of Asda, Allan Leighton, is pushing back against accusations that retailers are capitalizing on rising oil costs. As fuel prices climbed again, the average cost for a litre of petrol surged past 150p, a level not seen in nearly two years, with diesel prices exceeding 177p. This escalation follows recent military actions by the U.S. and Israel against Iran, which have contributed to ongoing increases in fuel prices.
Key Facts on Rising Fuel Prices
– Current Average Prices:
– Petrol: Above 150p per litre
– Diesel: Over 177p per litre
– Monthly Increases:
– Cost of filling a typical family car with unleaded petrol is now £9.50 more than last month, totaling over £82.
– A tank of diesel now costs £19 more, exceeding £97.
– Supply Issues: Some locations report limited fuel supplies, with certain pumps temporarily out of service due to heightened demand.
– Asda’s Response:
– Asda has not closed any forecourts due to the conflict and expects affected petrol pumps to resume operations following the next delivery.
– Leighton emphasized that while fuel volumes have increased significantly, demand currently surpasses supply.
Industry Perspectives
– The Petrol Retailers Association (PRA) reassured customers that the overall supply across the UK is stable, advising that there is no need to alter purchasing habits.
– The RAC describes the recent rise in petrol prices as an unwelcome milestone, especially with the Easter weekend approaching, which is anticipated to raise travel costs for families.
– Current statistics indicate that unleaded petrol costs are now 17p higher per litre than before the Iran conflict began, with diesel prices up by 35p per litre.
Criticism and Accusations
– Asda’s Leighton argued that government officials should refrain from making accusations of profiteering, stating, there’s no credibility in any of it. He pointed out that the government’s revenue from fuel duty and VAT increases with rising prices, suggesting they should examine their own practices before criticizing retailers.
– Despite soaring prices, Leighton asserted that Asda’s profit margins have been affected negatively by the price increase, reinforcing that there has been no profiteering in the current climate.
Market Dynamics
– Brent Crude oil prices have once again surpassed $110 a barrel, significantly influenced by geopolitical tensions in the Middle East. Recent fluctuations in wholesale oil prices—ranging from $73 to $116 per barrel—are tied to speculation about oil flow from this region.
– Analysts note that any increase of $10 in the wholesale oil price correlates to an approximate rise of 7p per litre at the pump.
Conclusion
The discourse on petrol prices continues to escalate alongside the fluctuations in the oil market, with allegations of profiteering being firmly rejected by leaders in the retail industry. As fuel prices rise amid geopolitical tensions, motorists are advised to plan fuel stops carefully and utilize technology to find the best prices available. With government actions and market responses in constant flux, the future of petrol pricing remains uncertain.