UK Drivers Still Paying More for Fuel at Asda Compared to Competitors
British drivers are continuing to pay higher prices for fuel at Asda compared to other supermarket retailers, according to analysis from the RAC. Asda, which was previously known as the most affordable retailer, is now charging an average of 2.1 pence per litre more for petrol than its rivals Sainsbury’s, Tesco, and Morrisons. The RAC report reveals that Asda’s average petrol price is 147.38 pence per litre, while its diesel price is 152.98 pence per litre. In contrast, their competitors’ average prices are 145.25 pence for petrol and 150.45 pence for diesel.
RAC Senior Policy Officer Rod Dennis expressed concern over the slow rate at which fuel prices are decreasing, despite a month of declining prices. He stated that drivers are still not getting a fair deal when they fill up their tanks. Dennis also pointed out that Asda, despite its merger pledge a year ago to offer the cheapest fuel, is no longer holding that title. Other major supermarkets and independent retailers are now offering lower prices.
Asda responded to the analysis, stating that their own data from the end of May indicated that they were still the lowest-priced supermarket for fuel. They claimed to have decreased the price of unleaded and diesel by an average of 2.31p per litre. However, Dennis argues that pump prices are still higher than they should be, considering the 5 pence per litre duty cut introduced to offset rising fuel prices due to the conflict in Ukraine.
The RAC report also highlights regional variations in fuel prices in the UK. Northern Ireland has the lowest prices, with petrol costing an average of 141.4 pence per litre and diesel at 142.5 pence per litre, significantly cheaper than the rest of the UK. There are also some good deals outside of Northern Ireland, with petrol available for under 139 pence per litre in Bishop Auckland and St. Leonards-on-Sea, and diesel under 143 pence per litre in Arbroath.
Furthermore, the report reveals that UK drivers pay the highest prices for diesel in Europe, with an average of 6 pence more per litre. The UK is also ranked in the top 10 for the highest petrol prices in Europe in May.
The RAC is hopeful that the new consumer protection laws introduced by the Digital Markets, Competition and Consumers Act will help boost competition and lower prices at the pump. These laws give the Competition and Markets Authority (CMA) the powers to scrutinize road fuel prices and report any malpractice to the government. The RAC believes that increased visibility of pump prices and fairer pricing, like those in Northern Ireland, can be achieved through these regulations.
In conclusion, despite a month of decreasing fuel prices, British drivers are still paying higher prices for fuel at Asda compared to other supermarket retailers. The RAC’s analysis reveals regional variations in fuel prices, with Northern Ireland offering the lowest prices. The RAC hopes that the new consumer protection laws will help increase competition and lead to fairer pricing at the pump.
