Asda's boss said that the U.S. and Israeli 'war on Iran' has caused a spike in demand for fuel, resulting in temporary?shortages? at some of their forecourts.

Fears of higher prices and supply disruptions from the conflict are driving motorists to fill up more often. Asda is Britain’s second-largest motor fuel retailer, after Tesco.

Allan Leighton is Asda's executive chair and he said that fuel sales have increased since the war began at the end last month.

"We are not receiving any more than our allocated amount from suppliers." "If your allocation remains the same and your sales volumes increase, your stock will go down. It's that simple," he said to reporters after Asda released its annual results.

Leighton said the "spikiness of demand" made it difficult to manage.

"These spikes could lead to temporary shortages. It could be a pump or a product. It could also be unleaded fuel, diesel, or a particular site. "But they are temporary, and they usually get corrected very quickly," said he.

You can expect to see this as long as the war continues.

The British finance ministry met with petrol retailers earlier this month after it was claimed that they were profiting from the rising price of fuel.

Leighton said that Asda’s margin would be lower.

He said that the government was making a lot of money from this. "Instead of pointing the fingers at others, which is what it does consistently, it should point the finger back at itself."

Leighton stated that Asda’s supply chain for food and general merchandise was holding up well during the crisis. He said that inflation would have to be affected. (Reporting and editing by Sarah Young; Sarah Davey)

(source: Reuters)