Asda begins cutting fuel prices at its forecourts
Asda has begun cutting the cost of petrol over the past two days, according to the RAC.
The move comes after the publication of a Competition and Markets Authority (CMA) review which has found that UK fuel retailers have taken part in ‘rocket and feathering’ pricing throughout 2022.
This is when fuel prices rise as wholesale costs rise, but then fall more slowly than costs come down.
The CMA found evidence of rocket and feather pricing across all retailers in March and April 2022, in particular for diesel prices, the watchdog said in a report.
CMA Interim Chief Executive, Sarah Cardell said: “It has been a terrible year for drivers, with filling up a vehicle now a moment of dread for many.
“The question for the CMA is whether a lack of effective competition within the UK is making things worse.”
“Although it is only a small proportion of the overall price, the increase in margins for many fuel retailers over the last few years is something we need to investigate further. The key thing we need to establish next is whether this development is down to competition problems or not.”
RAC has said Asda has cut 4.5p per litre off the cost of unleaded petrol and 5.5p off diesel across its 320 sites nationwide.
RAC fuel spokesman Simon Williams said: “Our data shows that, without advertising the fact, Asda has taken an average of 4.5p off the cost of litre of unleaded across its 320 sites in the last two days, and around 5.5p off diesel.”
“While we’re pleased one major supermarket retailer has finally started heeding our calls to pass on the enormous drop in the wholesale prices of both fuels, the fact these price cuts have been made so quietly is surely admission that they should have come much sooner.”
“Asda is now charging an average of 153.5p for petrol and 176.7p for diesel which is around 2p less than its rivals.”
“We urge the other three supermarkets to catch up quickly – or go even further – and give drivers some much-needed relief from high prices next time they fill up.”
“If they do, this will bring the UK average petrol price down from its current 157.8p which benefit drivers everywhere.”
“Despite these reductions our analysis of wholesale data shows this should really be just the beginning as there’s easily scope for another 10p a litre to come off the current average price of both petrol and diesel.”
“Perhaps it will be Asda which once again takes a leadership position by further cutting its prices to help drivers save money in the run-up to Christmas.”
