Asda's executive chair Allan Leighton has dismissed chancellor Rachel Reeves' allegations of petrol profiteering as 'nonsense' following the supermarket chain's report of a steep profit decline. Leighton told the Financial Times that petrol retailers haven't been raising prices unjustifiably despite recent oil price surges caused by Middle East tensions.

Asda reported adjusted earnings after rent fell by a third to £764 million in the year to December 31, with like-for-like sales excluding fuel declining 3.1 percent. The financial performance reflects severe disruption from a bungled £1 billion IT overhaul initiated to separate Asda from Walmart systems, which caused shelf shortages and exacerbated sales declines.

Leighton, who returned to Asda in late 2024 after a 24-year absence, warned that the Middle East war will likely worsen grocery price inflation by curbing fertilizer supplies and increasing packaging costs. He also called for the government to redistribute additional fuel duties to farmers. The controversy follows Reeves' 'price gouging' comments, which have angered industry groups and led to threats of boycotts from the Petrol Retailers' Association.