The boss of one of Britain’s biggest supermarkets on Friday hit out at Labour ministers’ claims of profiteering at the petrol pump.

Wading into the industry’s war with Whitehall, Asda chairman Allan Leighton said ministers had ‘zero credibility’, and took aim at Chancellor Rachel Reeves as relations between the two sides deteriorated.

Petrol prices have hit their highest level for nearly two years and Mr Leighton warned that, thanks to the conflict raging in the Middle East, ‘supply is tight,’ raising the prospect of shortages at ‘the odd pump’. 

But after both the Chancellor and Prime Minister said forecourts were ‘profiteering,’ the supermarket chief dismissed the accusations, pointing out the Treasury was raking in bumper petrol tax receipts.

In a blow for families gearing up for the Easter getaway next week, average petrol prices surged past 150p a litre for the first time since May 2024. 

And they are set to rocket further after the price of Brent crude oil rose again to $110 a barrel.

Mr Leighton said it was ‘unacceptable’ that ministers had the ‘gall’ to try to smear businesses, adding: ‘This whole thing is actually a disgrace, that they try to point the finger at petrol retailers for gouging. And, you know, it’s a typical camouflage. 

‘They point the finger at somebody else, hopefully then nobody will work out that [they] are the problem. 

‘You don’t have to be Einstein to work out where the problem is.’

Referring to the fact Ms Reeves is in line for a £1billion VAT windfall if the crisis continues, he called on ministers to consider ‘sharing’ the extra tax haul with drivers to spare them some pain at the pumps.

His comments echo those of the bosses of Next and Marks & Spencer, who have also attacked Labour on profiteering and rocketing energy bills. 

Mr Leighton was one of a host of supermarket bosses who snubbed a meeting with Ms Reeves this week to discuss the cost of living crisis.

The latest surge in oil prices came following Iran’s announcement that it had stepped up its blockade of the Strait of Hormuz, saying it was ‘closed’ and any tanker ships trying to pass would face ‘harsh measures’.

Despite Donald Trump giving Tehran an extension to come up with a deal to reopen the waterway on Thursday night, oil markets continued to spike on Friday, showing little faith in the US President’s proclamation that the war is being won.

Analysis by the RAC Foundation found that rocketing prices sparked by the war have collectively hammered drivers by an extra £402million at the pumps.

It piled fresh pressure on Ms Reeves to scrap Labour’s planned fuel duty hike.

With Asda being the UK’s second-largest fuel retailer, Mr Leighton said ‘clearly demand has been outstripping supply’ as Western oil deliveries have been squeezed by the strait’s effective closure. 

He stressed that temporary shortages had affected ‘the odd pump’ at a small number of forecourts, but added: ‘Our fuel volumes are up quite significantly and clearly demand has been outstripping supply. 

‘Supply is tight and we are all trying hard on that.’

He added: ‘The issue is a temporary one, and some could see issues when we are waiting for delivery, and we can expect to see that continue.

‘The spikiness at the moment makes this tricky for us, as spikes can lead to temporary shortages.’

The RAC’s Simon Williams said: ‘With the long-awaited four-day Easter weekend almost within touching distance, the cost of getting away by car is going to be noticeably higher this year.’

On Friday it also emerged that Ms Reeves was privately urged to scrap the fuel duty hike just days after the war broke out – but ignored warnings about the impact on drivers.

In a letter from petrol bosses on March 3, seen by the Daily Mail, the Chancellor was urged to do everything ‘within your power’ to ‘support’ drivers and help protect them from looming punishing prices at the pumps. 

But she ignored the warning without replying and has vowed to press ahead with the 5p-a-litre rise, which will add another £3 to the cost of an average fill-up.

It will come into force from September and will rake in billions more on top of the VAT windfall.

On Friday night, traders warned that diesel stockpiles were at risk.

Supermarkets and refineries faced running out of diesel by mid-May, the Financial Times said, with one source saying the situation was ‘concerning’.

A joint statement from Fuels Industry UK and the Petrol Retailers Association on Friday night said: ‘Supply across the UK is flowing normally and there is no need for any change in usual buying habits.’