Costco vs Tesco vs Asda: Which UK Supermarket Has the Cheapest Petrol as Fuel Prices Rise Again?

With average petrol prices expected to reach 160p a litre this week, many UK motorists are looking beyond branded forecourts in search of cheaper fuel. Supermarket petrol stations, including Costco, Tesco, and Asda, have long been among the most competitive options, although prices can vary depending on where drivers live.

According to the RAC, average petrol prices have already climbed to 157.81p per litre, while diesel has reached 175.71p. Higher wholesale fuel costs driven by rising oil prices are now filtering through to UK forecourts, meaning motorists could soon face even higher costs every time they fill up.

The Reasons Behind Rising Petrol Prices

Global oil prices have climbed as investors worry that escalating tensions in the Middle East could disrupt crude supplies and key shipping routes. The BBC explains why the conflict has unsettled energy markets and what it means for fuel prices worldwide.

The latest increase follows renewed geopolitical tensions involving the United States and Iran, which pushed Brent crude oil sharply higher before prices eased slightly.

Although wholesale oil prices have fallen from recent highs, they remain significantly above where they were at the start of July. Because fuel purchased by retailers takes time to move through refineries and distribution networks, drivers often see price rises weeks after movements in the oil market.

The RAC expects petrol to reach around 160p per litre if current wholesale costs continue feeding through to pumps.

Costco vs Tesco vs Asda

For many drivers, supermarket petrol stations remain one of the easiest ways to reduce fuel costs.

Costco is frequently regarded as one of the cheapest places to buy petrol or diesel, although motorists must pay for a membership before using its fuel stations. Drivers who regularly cover long distances may find the savings outweigh the annual membership fee.

Tesco operates one of the UK's largest supermarket forecourt networks and often offers competitive pricing, particularly for Clubcard members where promotions are available.

Asda has traditionally positioned itself as a value retailer and regularly prices fuel below the national average, although prices differ between regions and local competition.

So, which supermarket has the cheapest petrol? There is no single answer. While Costco is often regarded as one of the UK's cheapest fuel retailers, Tesco and Asda also regularly offer highly competitive prices depending on the location, local competition, and promotions. Consumer groups including the RAC recommend comparing nearby forecourts rather than assuming one retailer will always be the cheapest.

The Potential Fuel Savings for Motorists

Even relatively small price differences can make a noticeable impact over time.

A saving of 5p per litre equates to £2.75 on a typical 55-litre family car fill-up. For motorists filling their tanks every week, that could amount to savings of more than £140 over a year.

Those savings become even more significant as average petrol prices continue rising towards 160p per litre.

Other Ways to Reduce Fuel Costs

Motorists can also improve fuel efficiency by keeping tyres inflated to the correct pressure, avoiding harsh acceleration and braking, removing unnecessary weight from the vehicle, and combining shorter journeys where possible.

Motorists can also compare nearby forecourts using fuel price comparison apps, as neighbouring stations can differ by more than 10p per litre.

The Future Direction of Petrol Prices

Whether fuel prices continue climbing will largely depend on developments in global oil markets over the coming weeks.

If wholesale oil prices fall, pump prices should eventually ease, although consumer groups have repeatedly argued that reductions often take longer to reach drivers than price increases.

For now, motorists should expect higher fuel bills through the remainder of the summer, making supermarket forecourts and local price comparisons increasingly important for keeping motoring costs down.