Yahoo News Drivers who fill up with fuel at Asda issued warning
Asda has been named the UK's priciest supermarket for fuel, new analysis reveals.
The RAC reported that at the end of May, competitors Tesco, Morrisons and Sainsbury's were charging an average of 2.1p less per litre for petrol than Asda. Diesel saw an even greater disparity, with Asda's prices averaging 2.5p more per litre.
Historically, Asda has been known for offering the cheapest fuel, often leading the charge in reducing pump prices, according to the RAC.
However, since the takeover by billionaire Issa brothers and TDR Capital in 2021, there have been changes.
Following the acquisition of EG Group's UK and Irish petrol stations by Asda in May last year, Mohsin Issa claimed the deal would extend "Asda's highly competitive fuel" to a broader customer base.
Yet, a report from the Competition and Markets Authority (CMA) in July last year indicated that Asda's target fuel margin for 2023 was set threefold higher than in 2019.
Despite this, Gary Lindsay, TDR Capital managing director, assured the Commons' Business and Trade Committee in January that Asda did not pursue "a particular strategy to bump the price of fuel or to make a larger profit on fuel".
The RAC's analysis also highlighted that the average cost of petrol across all UK forecourts dropped by 2.4p per litre to 147.9p last month.
Meanwhile, diesel prices decreased by 4.5p per litre, settling at 153.6p.
RAC's Senior Policy Officer Rod Dennis commented that the slow rate of pump price reduction, considering a considerable decrease in wholesale costs, is concerning. He noted: "A month of decreasing fuel prices should be seen as a good one for drivers but the sheer time it is taking for any meaningful price reductions to reach forecourts is if anything a continuing cause of concern."
He followed up by reflecting how this pitiful pace of price cuts seems to offer a 'rocket and feather' scenario where petrol prices only dribble down when they ought to plummet sharply.
Rod had something to say about Asda too, stating: "It's also interesting to see that Asda no longer holds the crown for selling the cheapest fuel despite the pledge made when it was subject to a merger a year ago."
He felt other supermarket giants and some enterprising independent businesses now offer lower prices than Asda's.
Asda offered a response by clarifying its pricing strategy being different at its supermarket and "convenience" forecourts. In their official statement, a spokesperson mentioned: "Asda was the price leader in the supermarket fuel sector in May and we remain focused on providing our customers with the best value at the pumps as we grow in the convenience sector."
They highlighted Asda's efforts to reduce its fuel prices, explaining: "In May, we reduced the price of unleaded and diesel by a combined average of 2.31p per litre and also announced that we are trialling earn on fuel on the Asda Rewards app, where users can get 0.5% of their fuel spend back in their Asda Rewards Cashpot."
