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    1. Home
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    3. >Britain's Asda hit by motor fuel shortages as Iran war spurs demand
    Finance

    Britain's Asda Hit by Motor Fuel Shortages as Iran War Spurs Demand

    Published by Global Banking & Finance Review®

    Posted on March 27, 2026

    2 min read

    Last updated: March 27, 2026

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    Quick Summary

    Asda is facing temporary fuel shortages at some forecourts due to surging demand prompted by the US‑Israeli war on Iran, with motorists fuelling frequently amid fears of price hikes and supply disruptions.

    Asda Hit by Fuel Shortages as Iran Conflict Spurs Demand and Supply Concerns

    Impact of Iran Conflict on Asda's Fuel Supply and Retail Operations

    Surge in Fuel Demand Amid Geopolitical Tensions

    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.

    Asda's Response to Increased Fuel Sales

    Allocation Challenges and Stock Management

    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.

    Temporary Shortages and Quick Resolutions

    "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." 

    Government Scrutiny and Retailer Margins

    Finance Ministry Meetings and Profiteering Claims

    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".

    Government Revenue and Accountability

    "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."

    Broader Supply Chain and Inflation Effects

    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)

    Table of Contents

    • Impact of Iran Conflict on Asda's Fuel Supply and Retail Operations

    Key Takeaways

    • •Surge in demand linked to Iran conflict causing temporary forecourt shortages at Asda despite unchanged supplier allocations (Asda exec chairman Allan Leighton)
    • •Asda’s fuel margins are down, with government scrutiny over fuel pricing while profitability remains pressured
    • •Broader energy disruption from the Strait of Hormuz closure is driving global oil prices above US$100/barrel and inflating UK energy and inflation forecasts

    Frequently Asked Questions about Britain's Asda hit by motor fuel shortages as Iran war spurs demand

    1Why is Asda experiencing fuel shortages?

    Asda is facing fuel shortages due to a surge in demand driven by the ongoing U.S.-Israeli war on Iran, causing motorists to fill up more frequently.

    2Are the fuel shortages at Asda permanent?

    No, the shortages are temporary and usually resolved quickly, according to Asda's executive chairman Allan Leighton.

  • Surge in Fuel Demand Amid Geopolitical Tensions
  • Asda's Response to Increased Fuel Sales
  • Allocation Challenges and Stock Management
  • Temporary Shortages and Quick Resolutions
  • Government Scrutiny and Retailer Margins
  • Finance Ministry Meetings and Profiteering Claims
  • Government Revenue and Accountability
  • Broader Supply Chain and Inflation Effects
  • 3Is Asda profiting from rising fuel prices?

    Asda denies profiteering, stating that their fuel margin will be down and the government benefits more from the situation.

    4How has the Iran conflict affected UK fuel demand?

    The Iran conflict has led to increased fears of price hikes and supply disruptions, prompting higher-than-normal fuel sales at retailers like Asda.

    5Is Asda's wider supply chain affected by the crisis?

    Asda reports that its food and general merchandise supply chain is generally holding up during the crisis, though an impact on inflation is likely.

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