Amid soaring fuel prices, which forecourt operator stocks can investors consider? - Kalkine Media

August 19, 2022 09:22 AM BST | By Abhishek Sharma
Follow us on Google News:


  • Soaring fuel prices are likely to push a significant chunk of UK households into fuel poverty by January, a new study has revealed.
  • About 18 million families will plunge into financial precariousness, the study warned.

With inflation hitting another 40-year-high in July, almost everything has become significantly costlier than last year. Millions of Brits, especially those in the lower and middle-income groups, are facing a huge squeeze on their budgets, struggling to pay for essentials.

According to a study by the University of York, an estimated 45 million or two-thirds of all UK households will fall into fuel property by January next year. According to a report published by the Guardian, soaring inflation is expected to push about 18 million families into financial precariousness. 

Petrol and diesel prices may climb up to £2 per litre this summer.

© 2022 Kalkine Media®

Besides, 86.4% of pensioner couples and 90.4% of single-parent households with two or more kids are estimated to slip into fuel poverty due to the rising prices.

Region-wise, Northern Ireland will be the hardest hit, with over 76% of households struggling to make ends meet. This will be followed by Scotland at 72.8% and the West Midlands at 70.9%.

Notably, the government has taken steps to ease the burden of high prices on households, but they have failed to make any significant impact. In February, the government announced a 5p fuel duty cut, but most forecourt operators haven't passed them on to the customers. 

In the wake of this information, Kalkine Media® explores some FTSE-listed forecourt operators and see how their stocks have been faring.

Tesco Plc (LON: TSCO)

The UK's largest supermarket chain, Tesco holds a market capitalisation of £20,273.64 million. The stock value has appreciated by 10.35% in the past 52 weeks, and the company currently has an EPS of 0.19. Shares of Tesco were trading at GBX 271.40, up 0.26% as of 8:02 am GMT+1 on Friday.

BP Plc (LON: BP.)

Leading oil and gas firm, BP Plc, recently reported its bumper profits in the last two quarters due to the soaring fuel prices. BP., on Friday was enjoying a market cap of £83,545.82 million and was trading at GBX 442.10 as of 8:02 am GMT+1. The global firm was marginally up by 0.02% and over the past one year, it has provided shareholders with a return of 46.16%, with a YTD return of 33.93%.

J Sainsbury Plc (LON: SBRY)

Sainsbury's is another British supermarket chain, and it also operates fuel pumps in the country. The company has a market cap of £5,187.56 million, and it is also a constituent of the FTSE 100 index. The stock's one-year return stands in the negative territory at -23.87%, while the EPS is 0.30. Shares of Sainsbury's were trading at GBX 221.40, up 0.04% as of 8:30 am GMT+1 on 19 August.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Top LSE Listed Companies