ASDA has lost its position as the cheapest fuel retailer among the UK's 'big four' supermarkets.
According to the RAC’s latest Fuel Watch analysis, Tesco, Morrisons, and Sainsbury's are now offering more affordable fuel prices than ASDA, with petrol averaging 145.25p per litre compared to ASDA's 147.38p.
Diesel’s average price of 150.45p per litre is also below ASDA's 152.98p average.
ASDA “for a long time prided itself on selling the cheapest fuel”, said RAC.
Despite a slight drop in fuel prices in May, the motor insurance company said drivers “continue to get a raw deal at the pumps”.
These reductions are minimal compared to the decline in wholesale fuel prices, which have been falling since late April.
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.
Too little, too leisurely
“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."
The RAC noted that retailers are maintaining significantly higher margins on fuel than in the past, with margins on petrol at around 13p and diesel at 16p per litre.
This is nearly double the long-term average margin of 8p per litre.
"Not only have wholesale prices been coming down consistently for over a month, but the average margins taken by retailers are still so much bigger than in the past,” said Dennis.
“This means pump prices are at levels much higher than we ought to be seeing, which is all the more concerning given drivers are meant to still be benefiting from a 5p a litre duty cut introduced more than two years ago."