Home Economy Asda Named Most Expensive Supermarket Fuel Retailer in the UK

Asda Named Most Expensive Supermarket Fuel Retailer in the UK

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Asda has been identified as the UK’s most expensive supermarket fuel retailer, according to recent analysis.

The RAC reported that at the end of May, Asda’s petrol prices were, on average, 2.1p per litre higher than those at rival supermarkets Tesco, Morrisons, and Sainsbury’s. The disparity was even greater for diesel, with a difference of 2.5p per litre.

Historically, Asda has been known for offering the cheapest fuel among UK supermarkets, often leading the way in reducing pump prices. However, the supermarket’s pricing strategy appears to have shifted following its acquisition by billionaire Issa brothers and private equity firm TDR Capital in 2021.

In May last year, Asda purchased the UK and Irish operations of petrol station giant EG Group, also owned by the Issa brothers. At the time, Mohsin Issa claimed the acquisition would allow Asda to extend its “highly competitive fuel” offerings to more customers.

However, a report by the Competition and Markets Authority (CMA) in July last year revealed that Asda’s target fuel margin—the difference between the purchase price of fuel and the pump price—was set to be three times higher in 2023 compared to 2019.

Despite this, TDR Capital managing director Gary Lindsay told the Commons’ Business and Trade Committee in January that Asda did not have “a particular strategy to bump the price of fuel or to make a larger profit on fuel.”

The shift in Asda’s fuel pricing strategy has drawn attention and concern, given its previous reputation for affordability. This development may influence customer perceptions and loyalty, as well as the competitive dynamics among UK supermarket fuel retailers.

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