Asda’s reputation as the provider of the UK’s cheapest fuel could soon face a stiff challenge when Costco opens its first petrol filling station in this country.

As Forecourt Trader revealed last summer the US giant applied for and was then granted planning permission for a petrol filling station (PFS) in the car park of its Liverpool site.

Nick Deeks, Costco UK’s director of real estate, told Forecourt Trader: “We are now working with contractors who we hope will start work on site shortly. We anticipate that the building program will be in the order of 10 weeks.”

The plans are for a PFS providing 16 fill positions, which would only sell fuel to Costco members.

Costco is a major player in the north American market with a worldwide turnover across all its product ranges of $100bn, and customers voted it north America’s favourite petrol station operator, according to US customer intelligence company Market Force.

Costco prides itself on selling merchandise at “substantially lower prices than are typically found at conventional wholesale or retail outlets”, and Market Force said the low prices and convenient petrol pumps in north America were winning market share from other operators.

Deeks said it was too early to announce specific plans for the other 24 UK sites which stretch from Aberdeen in the north to Cardiff in Wales and as far south Southampton, but Costco was refused planning permission for a PFS at its Thurrock site on environmental problems prior to winning consent in Liverpool.