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Asda says fuel price is never below cost

29 January, 2016

Asda has stated it has a petrol pricing policy that it will not trade below cost, as part of a planning application for a new petrol filling station at the Asda store in Fleetwood, Lancashire.

Acting on behalf of Asda, Deloitte is seeking permission from Wyre Council for a fully automated filling station with three pumps and six filling positions.

In the documents it says: “Asda’s clear petrol pricing policy states Asda will not trade below cost or offer discounts via either a loyalty scheme or to food customers who spend over a certain amount as offered by other supermarkets.”

However, it adds that that the effect of an Asda filling station is to drive down prices in the local catchment, and it quotes from the OFT’s investigation into petrol pricing in 2013 to support this.

It says the specification for the development is based on sales volumes at the store and from experience of similar filling stations on operation. It states: “Existing and projected volumes determine that an Asda standard model three-island forecourt would be capable of meeting customer demand.”

The development would require reconfiguration of the car park and a reduction capacity from 296 spaces to 272.

The application predicts the proposed new facilities will largely serve existing Asda customers so it will have minimal impact on roads on the area.

It also notes that the development is in an area identified by the Environment Agency as having a high risk of flooding, but adds: “It is appropriate to the location meeting the requirements of the NPPF and Planning Practice Guidelines.”