Certain fuel outlets are facing brief shortages as constrained supplies connected to the Middle East conflict start to have an impact, the head of Asda has cautioned.

The UK’s number two fuel retailer also rejected assertions that its sites are exploiting customers through recent price rises.

Petrol and diesel expenses have risen steeply since late February, after the conflict between Iran and US-Israeli forces hampered oil production and deliveries from the area.

Typical unleaded costs have surged by over 14p per litre during that timeframe, hitting 147.19p, according to RAC data released earlier this week.

Allan Leighton, executive chairman of Asda, stated the retailer has experienced exceptional demand from motorists during this period of price fluctuations.

The executive emphasised the problem has only impacted individual pumps at a handful of its fuel sites.

He stated that fuel sales volumes have risen considerably and that demand has clearly been exceeding availability.

Supplies are constrained and everyone is working hard on this issue.

The problem is short-term, and some locations may experience difficulties while awaiting deliveries, which is expected to persist.

The current volatility makes this challenging for us, as fluctuations can result in brief shortages. These are transient and get resolved promptly.

The executive additionally denied allegations that fuel retailers have increased their earnings through recent price hikes.

Earlier this month, Prime Minister Sir Keir Starmer indicated the Government would intervene if retailers attempted to overcharge customers through excessive pricing.

When questioned on this, Mr Leighton said the company was not profiting unfairly.

He stated that their profit margin would actually decline as a result, and that this situation is clearly not occurring.

People question where the money is going and the Government are benefiting significantly from this situation.

Why is the Iran conflict causing fuel prices to increase?

The conflict is affecting both oil supplies and distribution channels, while markets are applying an additional risk premium.

Research from the RAC and other sources indicates UK drivers have already spent hundreds of millions more at filling stations since the Iran fighting escalated, with typical petrol and diesel prices rising substantially in March.