The authority that governs competition across the UK, the Competition and Markets Authority, has given out a warning today (April 20) that the recent £6.8bn buy out of Asda could lead to higher petrol prices in some parts of the country.

It has not confirmed which areas of the UK that might impact, but in Frome, the Asda petrol station is consistently the cheapest pumps in town. It is also hugely busy right now with the Sainsbury's petrol forecourt closed for renovations until May 21.

The Issa Brothers and private equity firm TDR Capital bought Asda through jointly owned company Bellis. The Issa Brothers and TDR Capital also own EG Group, which operates 395 petrol stations in the UK, while Asda owns 323.

Many of Asda's and EG's petrol stations are located in the same parts of the UK and the investigation by the Competition and Markets Authority (CMA) has focused on these overlaps.

The CMA has found that the deal raises local competition concerns in relation to the supply of road fuel in 36 areas across the UK and could lead to higher prices for motorists.

Joel Bamford, Senior Director of Mergers, said: " Our job is to protect consumers by making sure there continues to be strong competition between petrol stations, which leads to lower prices at the pump. These are two key players in the market, and it's important that we thoroughly analyse the deal to make sure that people don't end up paying over the odds.

"Right now, we're concerned the merger could lead to higher prices for motorists in certain parts of the UK. "

The buyers now have five working days to offer legally binding proposals to the CMA to address the competition concerns identified.

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