- UK petrol prices have risen sharply due to the Iran conflict, with supermarkets offering the best deals but facing high demand
- Supermarkets often price fuel lower as a marketing strategy, but queues and temporary shortages can occur
- Online tools like the government’s Fuel Finder help locate the cheapest petrol prices nearby using live price updates
Petrol and diesel costs have shot up since the Iran conflict started and now, new figures suggest the price gap among suppliers has widened, too.
It’s long been known that supermarkets tend to have slightly cheaper fuel prices than other forecourts, but new data from the AA suggests the gulf is getting bigger.
The price difference on February 2, before the conflict in the Middle East began, was 5.4p, the AA said. But last week, supermarket petrol was 7.6p per litre lower on average.
Diesel at supermarkets last week was an average of 8.8p cheaper than elsewhere.
But there is a downside to heading to the supermarket: you might hit a queue or closed pumps.
Asda warned of ‘temporary shortages’ amid high demand on Friday, while the BBC reports Sainsbury’s and Tesco were forced to temporarily close some pumps over the weekend.
‘Pressure on supermarket supply comes at predictable times and places – weekends and cities,’ said AA. ‘However, generally speaking, the AA notes that disruptions have not been widespread, and are quickly resolved when they happen.’
What’s happening with petrol and diesel?
In a nutshell: supply chain disruptions in the Middle East have caused global instability on fuel prices. Iran’s selective blockade of the Strait of Hormuz – through which around 20% of the world’s oil and natural gas flow – is a key factor.
Motoring research charity the RAC Foundation estimated that rises in pump prices since the conflict in the Middle East began on February 28 have led to motorists paying an additional £409 million for diesel and £135 million for petrol.
Why are supermarkets often cheaper for fuel?
High-volume purchasing and low operational costs help big supermarkets to offer fuel at lower prices, but as personal finance guru Freddie Winter points out, it’s also a very good marketing strategy.
‘I think quite often it’s possible that it could be a loss leader, or close to that, in order to get shoppers on site so they spend more on other items,’ he tells Metro.
‘Remember, petrol and diesel prices are always displayed in big letters at petrol stations, so it’s easy for shoppers to compare and therefore it’s easy for supermarkets to stand out as offering lower fuel prices.’
The AA said the widening price disparity helps explain why many drivers were ‘drawn to the supermarkets’ last weekend, which led to ‘pressure’ on their fuel supplies.
There appears to be a similar situation in France, with online maps showing the majority of its forecourts that had limited supplies or were dry on Sunday were supermarket or discount store sites.
The AA said 1.6% of French filling stations reported running low on fuel, with 0.2% completely out.
Where to get the cheapest petrol and diesel
Supermarkets tend to be a safe option if you’re out on the road and can’t do your research, but they’re not always the cheapest and prices between each may vary.
To get the best deal near you, at that very moment, your best bet is to use an online price tracker.
Back in February, the government launched its Fuel Finder scheme, which mandates all UK petrol stations to report their prices, with changes in price to be updated within 30 minutes.
Sites including Confused.com, DriveScore, Fuel Finder UK, Fuel Spy, MotorMouth, PetrolPrices.com and RAC Fuel Watch now use this data to help customers compare petrol and diesel prices.
Just last week, MoneySuperMarket launched its own version. Simply add your postcode and the distance you’re willing to travel into the new online tool to receive an instant list of up-to-date fuel prices at nearby stations.
‘Small savings can add up over time. Saving 5p per litre can mean up to £156 a year for drivers who fill up regularly,’ said Alicia Hempsted, Car Insurance Expert at MoneySuperMarket.
‘With volatility in fuel prices, comparing costs locally is one of the easiest ways for drivers to stay in control of what they spend at the pump.’
Freddie agrees, urging Brits to have the patience for fuel admin as prices continue to fluctuate.
‘I do think the biggest one that’s overlooked saving though, is trying to drive more economically i.e., accelerating less vigorously and trying to avoid using the brake as much as safely possible,’ he adds.
‘I literally turn this into a game for myself to see if I can get the average miles per gallon down on my car’s dashboard – so gamifying it helps!’