Asda is now the UK’s most expensive supermarket fuel seller, research shows, after the retailer’s private owners ditched its long-held pledge to be the cheapest on the market.
The retailer, which was bought by the billionaire Issa brothers and their private equity partner TDR Capital in 2021, charged an average 2.1p a litre more for unleaded petrol than rivals Tesco, Sainsbury’s and Morrisons at the end of May, according to an analysis by the RAC motoring organisation.
The difference in average diesel prices was even steeper, at 2.5p a litre, according to the study using data gathered by the Competition and Markets Authority (CMA) which has been closely monitoring fuel prices in an effort to ensure motorists are not being ripped off.
The Issa brothers made their fortune from petrol forecourts. After acquiring Asda they folded part of their forecourts business, EG Group, into the supermarket chain. At the time of the deal in May 2023, Mohsin Issa said it would enable him to offer “Asda’s highly competitive fuel” to more customers.
The RAC’s senior policy officer, Rod Dennis, said: “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.
“The other three major supermarkets, as well as some enterprising independents, now offer lower prices.”
Asda said it was still the cheapest fuel retailer at its large supermarket outlets but admitted it charged higher prices at its convenience stores, where the market was different.
It said that if those smaller outlets were excluded Asda offered unleaded fuel at an average price of 145.12p compared with the next cheapest supermarket which it said was Morrisons on 145.17p while Tesco supermarkets sold fuel for an average 145.52p.