The Daily Observer London Desk: Reporter- Victoria Smith
Supermarket giant Asda took advantage of drivers amid fluctuating fuel prices caused by Russia’s invasion of Ukraine, according to official watchdogs.
The Competition and Markets Authority, giving evidence to MPs yesterday on the all-party Business and Trade Committee, found motorists were effectively over-charged by an average of 6p a litre on fuel in 2022, adding up to £900million.
It identified a particular rip-off on diesel, where the apparent over-charging rose to as much as 13p a litre and continued into this year.
Dan Turnbull, CMA markets director, said a change in fuel pricing policy at Asda – trebling its profit margin – was the apparent rip-off.
Significantly, Asda failed to co-operate with the CMA’s investigation into pricing and, as a result, has been hit with two fines of £30,000.
Supermarket giant Asda took advantage of drivers amid fluctuating fuel prices caused by Russia’s invasion of Ukraine, according to official watchdogs
Picture shows EG Group founders Mohsin (right) and Zuber Issa (left) in Blackburn Nov 13, 2019
Mr Turnbull criticised Asda saying: ‘We found between 2021 and 2023 they significantly increased their internal fuel margin targets on a pence per litre basis.
‘And by 2023, pence per litre targets were three times what they had been in 2019.
‘Asda told us they saw an opportunity as the wholesale price fell to pass reductions in the retail price more slowly than they previously would have done.
‘They said they applied that in over 100 petrol stations where they had no direct competition from another supermarket.
‘They also said there was a greater opportunity to do that on diesel in 2023 because of market volatility.’
But co-owner of Asda Mohsin Issa, asked by MPs if his company had taken advantage of the Ukraine war, said: ‘Absolutely not.’
The CMA will make an announcement today on supermarket grocery prices and whether stores failed to offer clear information to shoppers.
