This chart shows that between August 2019 and May 2020, Asda priced relatively consistently across the UK, which means that no matter which Asda you visited, you would pay the same or comparable price. In April 2020, this was particularly true, where prices were nearly all identical.
From June 2020 to April 2022, prices spread more widely across the Asda sites. Note that this isn’t showing an increase in price but an increase in price against our benchmark, Asda Bolton, which became one of the cheaper Asda’s during this time.
April 2022 is again an interesting point on this timeline. Prices were nearly exclusively 158.7ppl and then 160.7ppl during this time.
From May 2022 onwards, there appears to be a shift in pricing strategy with a much wider spread of prices across the Asda sites. There is more than a 15ppl spread across Asda locations from May 2022. This isn’t because of global pricing factors or exchange rates.
Asda has changed its strategy; from a relatively consistent national pricing structure to significant variations across the country. And remember, the CMA found that Tesco and Sainsbury’s were passive during this period, meaning they used Asda as a guide to price their sites. Any change in pricing strategy or margin increase that was seen on Asda forecourts, was also seen across all the supermarkets, and in the other retailers.
The market has not performed as it should. Supermarkets have 44% of the road fuel market (2021). The CMA’s report notes that other retailers, including Tesco and Sainsbury’s, did not respond promptly to cost movements and/or try to win market share. The report suggested, “Asda and Morrisons have been able to keep their market share broadly stable across this period.” Asda increased prices due to a lack of price competition from others.
The proposed solution from the CMA is for more market transparency. We agree this is a good thing. But it is no silver bullet. And will it stop this type of thing from happening again? It is being branded as a new idea for the UK, but one that is available in Germany and Australia. Still, fuel comparison platforms such as PetrolPrices are already available in the UK.
To read more about fuel price data in the UK you can do so here, at our Latest Fuel Price Data analysis page.
Does this go far enough? Let us know your thoughts in the comments.
At PetrolPrices we are working and have been since 2005 on offering a more transparent fuel market. We continue to invest in the app and have recently added the Search Here button, making finding prices across the UK even easier. So, if you haven’t got the latest version, please check out the Play Store or App Store. Thank you to everyone that has added a price or written a review. We hope you continue to find value in the information provided within our app and website.