Soaring oil prices lead to bumper petrol profits at Britain’s biggest supermarkets

Soaring oil prices have led to bumper profits on petrol sales at Britain’s biggest supermarkets, revealed fresh figures released yesterday.

Profit margins on petrol sales have nearly tripled since 2019 at the big four food retailers, according to data from RAC.

Margins widened to 8.6 per cent last month, up sharply from the 3.2 per cent registered three years ago.

The news was first reported by The Sunday Times.

Asda is the lead discounter of fuel in the UK among the country’s top supermarkets, analysts at Shore Capital said, adding the supermarket’s new owners, the Issa brothers, are employing a new pricing strategy.

Typically, fuel sales have been a loss leader for supermarkets, with food retailers offering petrol as a means to lure customers into their shops.

However, the global surge in oil prices driven by a recovery in demand as countries emerged from Covid-19 curbs has allowed them to hike pump prices, boosting profits in the process.