21 July 2023 , 23:01
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Supermarkets have more than doubled their margins on fuel since the war in Ukraine.
RAC analysis found Asda, Tesco, Morrisons and Sainsbury’s were making an average of around 4.7p per litre on fuel sales when Russia invaded in February 2022.
This has now risen to about 10p a litre, leading to higher pump prices. Supermarket fuel margins were 2.3p a litre in 2016. Lower fuel prices helped the Consumer Prices Index measure of inflation fall from 8.7% in May to 7.9% last month.
The RAC’s Simon Williams said the decline could have been even bigger if supermarket pump prices fell in line with wholesale costs. He said: “Everyone is paying more than they should be.” Earlier this month, a Competition and Markets Authority report found supermarkets overcharged drivers by £900million last year.
It called for a price monitoring body with retailers forced to give live prices for fuel finder apps.
Asda praised over inclusive kids clothing range with holes for feeding tubes
Tesco's margins have also shot up (PA)An Asda spokesperson said: This Asda is proud to be a fuel price leader – and an Asda petrol station in a local area keeps prices down for all motorists. In support of calls for greater transparency in fuel pricing, we will be making our prices visible for all of our fuel stations in the coming weeks so motorists can be confident they are getting the best prices when filling up at Asda.
"We work hard to deliver the best value for customers where they want and need it most across both fuel and their weekly shop. Asda’s profits last year were down by more than 20% year-on-year, resulting in a profit of 1.7p for every pound earned.
"This decrease is a direct result of absorbing inflation to keep grocery prices as low as possible, while investing in new initiatives to help families during the cost-of-living crisis. Today Asda has reduced the price of over 200 family favourites by an average of 9%, further showing our commitment to supporting our customers.