Motor Insurance

Asda no longer cheapest supermarket for petrol and diesel - top 4 revealed

Asda is no longer the cheapest supermarket for petrol and diesel out of the 'big four'.

And despite fuel prices falling in May, savings made across the board are still not being fully passed on to drivers, the RAC has found.

The average cost of a litre of unleaded petrol dropped by 2.4p last month, down to 147.88p, saving drivers around £1.30 a tank. The reduction at supermarkets was smaller at just 1.2p dropping to an average 146.15p a litre.

Average diesel prices dipped further by 4.5p, down to 153.58p, although again supermarkets cut by less, at 3.4p a litre, to an average 151.49p.

Wholesale fuel prices have been falling since April, but instead of cutting prices at the pump, retailers are now making a 13p a litre mark up on petrol and 16p on diesel, RAC's Fuel Watch said.

The numbers are also frustrating given motorists are still meant to be benefiting from a 5p a litre cut in fuel duty.

Read more: Average MPG for Cars UK

While Asda has long-held the title for the cheapest of the big four supermarkets for fuel, it has now been overtaken by Tesco, Morrisons and Sainsbury's. Between the three, they are on average 2.1p a litre less than Asda for petrol, and 2.5p a litre cheaper for diesel.

Morrisons took the top spot for May 2024, just a fraction ahead of Tesco and Sainsbury’s.

RAC senior policy officer Rod Dennis said: “A month of decreasing fuel prices should be seen as a good one for drivers, but the sheer time it is taking for any meaningful price reductions to reach forecourts is if anything a continuing cause of concern.

“When it comes to much-needed pump price cuts, it’s sadly a case of too little, too leisurely, with most drivers still getting a miserable deal every time they fill up."

SupermarketAverageLowestHighestDifference
Unleaded petrol
Morrisons145.0p138.7p149.9p11.2p
Sainsburys145.2p137.9p150.9p13.0p
Tesco145.5p139.9p147.9p8.0p
Asda147.4p139.7p174.9p35.2p
Diesel
Morrisons150.4p142.7p155.7p13.0p
Tesco150.4p140.9p152.9p12.0p
Sainsburys150.6p140.9p156.9p16.0p
Asda153.0p141.7p181.9p40.2p

The Competition Markets Authority revealed last August Asda's fuel margins has risen by 6p a litre between 2019 and 2022, NimbleFins previously reported.

Asda vowed to display its fuel prices online as a result.

The CMA now has more powers to scrutinise fuel prices and report malpractice to the Government after a new law came into effect on May 24 2024.

The CMA hopes this will increase competition on the forecourts and lower prices.

There is also a proposed 'Pumpwatch' scheme which will allow drivers to compare real-time fuel prices via an app, in-car devices and comparison websites.

Mr Dennis added: “The CMA now has the powers it needs to take a closer look at what’s going on across the country when it comes to fuel retailing. In the short term, this should mean greater visibility of pump prices for drivers – and the far fairer prices that those in Northern Ireland continue to enjoy.

"But crucially, it should also mean it can identify occasions where wholesale price drops aren’t being properly reflected at the pumps, something our analysis shows is sadly still happening."

Read more:

Helen Barnett

Helen is a journalist, editor and copywriter with 15 years' experience writing across print and digital publications. She previously edited the Daily Express website and has won awards as a reporter. Read more here.

Comments

Car Insurance

  • You could save up to £530*
  • 4.8 out of 5 stars**
  • Quotes from 100+ providers


Motor Insurance Reviews

NimbleFins Newsletter

Get deals, tips, news, and more!