Asda, once known for its low fuel prices, has become the most expensive fuel retailer in the UK, according to analysis by breakdown experts the RAC. Rivals Tesco, Morrisons, and Sainsbury’s offer petrol at an average of 2.1p per liter less than Asda, while the gulf between Asda’s diesel prices and those of other supermarkets is even wider at 2.5p per liter. This marks a significant departure from Asda’s previous position as the cheapest fuel seller in the country.
The RAC’s analysis revealed that across all UK forecourts, the average price of petrol has decreased by 2.4p per liter in the past month, while diesel prices have dropped by 4.5p per liter. However, RAC senior policy officer Rod Dennis believes that pump prices should be falling more rapidly in line with declining wholesale costs.
A new law implemented by the CMA this month empowers the government to more closely monitor and report on fuel pricing issues, with the potential to take action on pump margins in the future.
Asda’s acquisition by the Issa brothers in 2021 and subsequent integration of EG Group’s UK arm may have contributed to the increase in fuel prices at Asda. The Competition and Markets Authority (CMA) reported in July last year that Asda’s target fuel margin was three times higher in 2023 compared to 2019.
Despite commitments made during the merger a year ago to maintain competitive fuel prices, Asda has lost its position as the cheapest fuel provider. Other major supermarkets and enterprising independent retailers now offer lower prices, leaving drivers facing higher fuel costs at Asda.
