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Manchester Evening News
Manchester Evening News
Business
Cal Byrne

Why Tesco, Asda, Sainsburys and Morrisons petrol is cheaper than branded petrol stations

Petrol prices have continued to rise across the country, with the £2 per litre mark for unleaded already being breached in some parts of the UK.

The price rises are being driven by the continued war in Ukraine and subsequent sanctions on Russia, as well as Covid restrictions being lifted in China which has increased demand for diesel and petrol worldwide.

RAC spokesperson Simon Williams has said about the continuing trend of rising fuel costs: "More radical government intervention is urgently needed, whether that's in the form of a further reduction in fuel duty or a VAT cut."

Read more: There's a Greater Manchester petrol station where they'll still fill your car up for you

Mr Williams added: "Sadly, we expect to see the average price of petrol break through the 180p mark this week with diesel moving further towards 190p."

Why are supermarket prices cheaper than some other locations?

While the cost of petrol can vary from location to location, supermarket retailers of fuel tend to be cheaper than their competitors by an average of 3-5p per litre. As supermarket petrol stations are more likely to be found in urban locations they have greater local competition for prices, which encourages lower prices.

Rural locations of petrol retailers will often be the only sellers for several miles, and so can ‘get away with’ charging slightly more for their product as they know customers in the vicinity don’t have an easy alternative they can go to.

As Tesco, Asda, Sainsburys and Morrisons are more likely to operate near large urban populations, chances are there will be another petrol retailer (or supermarket retailer) within the vicinity so they need to remain competitive on prices to stop customers from plumping for their rival over them. For example, retailers competing with others in the vicinity will often start price wars to try and attract customers to their location, driving down the costs of fuel for all.

Is the fuel different quality at supermarket petrol stations?

All fuel brands will be slightly different from one another. The key differences are from the type and amount of performance additives that are added to the base unleaded fuel, Which explains.

However, in the UK all petrol and diesel must reach a minimum standard, which is the same for supermarkets and branded petrol forecourts. Fuel must conform to British and European standards - EN228 for unleaded and for diesel EN590.

Cheapest petrol prices near Manchester today:

  1. Costco Manchester (166.7p)*

  2. Asda Eastlands (168.7p)

  3. Morrisons Openshaw (168.7p)

  4. Morrisons Failsworth (168.7p)

  5. Morrisons Chorlton-cum-Hardy (169.7p)

  6. Tesco Manchester Gorton Extra (169.9p)

  7. Tesco Droylsden (169.9p)

  8. Tesco Blackley automat (169.9p)

  9. Tesco Failsworth Extra (169.9p)

  10. Morrisons Oldham (170.7p)

*Costco membership is required to purchase at this price. All prices listed are via petrolprices.com on June 8.

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