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Asda justifies planning application with lower price claim

28 November, 2014

Asda has applied to add a petrol station to a superstore just one year after the outlet was built, and claims it wants to bring lower-priced fuel to local residents.

The superstore, at Quedgeley in Gloucester, opened in October 2013 and Asda has now applied for planning permission for an eight-pump automated filling station in the corner of the car park.

In a covering letter with the application it said: “A recent report by the Office of Fair Trading found the presence of an Asda petrol station drives down the cost of fuel in a local area with the scale of the effect being much greater than the effects associated with any other retailer.

“This is based on Asda’s approach to being the first to lower their prices and the last to raise them. The Office of Fair Trading report highlights that on average the presence of an Asda PFS in an area reduces the price of petrol by 0.8ppl.”

It added: “Customers have come to expect a PFS to be associated with a modern foodstore and clearly the fact that the Quedgeley store does not have one could result in customers being attracted to other foodstores in the locality which do have petrol filling stations.”

The proposed petrol station would have eight fill positions and operate from 6am to midnight from Monday to Saturday and 9am to 4pm on Sundays.

The pumps would be self-service, operated by credit cards only, with no cash sales. The letter added: “This method of forecourt operation is significantly more efficient than pay at kiosk or drive to pay station with much reduced standing time and consequently higher throughput with minimal queuing.”





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