Drive around any town or city in the UK and you’ll quickly notice fuel costs can vary widely. In particular, supermarket fuel is often notably cheaper than what’s offered by the big brands such as BP or Shell.
But why is this the case? And will buying supermarket fuel make a difference to how your car performs? Read on to find out.
Why are supermarkets selling fuel?
Supermarkets have been selling fuel since the 1970s, and have steadily grown their market share. Indeed, almost four in five UK homes now lie within three miles of a petrol station run by Tesco, Asda, Morrison’s or Sainsbury’s. This is according to the RAC Foundation.
However, most supermarkets’ main competitors aren’t the big fuel retailers, but each other. These brands aggressively cut their fuel prices to undercut their rivals and get customers through the doors and into the aisles.
After all, most people will drive to a supermarket to do their big weekly shop anyway, so it makes sense to offer a convenient extra incentive to opt for a certain brand over another. If price per litre is your main deciding factor in where to buy fuel, this can affect your decision on where to shop for groceries too.
How much cheaper is supermarket fuel?
There are a lot of factors that go into determining the price of fuel. Global oil prices, how far the petrol station is from the refinery and the level of competition in the area all contribute. Yet overall, supermarket service stations consistently offer cheaper fuel than the big oil brands.
On average, petrol prices on the supermarket forecourt are usually around 3p to 5p cheaper per litre than for branded fuel. Sometimes, however you could find petrol as much as 8p or even 10p cheaper than from the big oil companies.
This may be especially true when supermarkets are engaging in price wars with each other, or are offering extra discounts for customers who spend a certain amount in store.